Dangote Refinery has set the gantry price of aviation fuel at ₦1,820 per litre, a move aimed at improving transparency in Nigeria’s downstream petroleum sector.
The development comes as airline operators continue to grapple with rising fuel costs, which they say are placing significant pressure on operations across the aviation industry.
Despite advisory guidance issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), oil marketers have reportedly continued to sell aviation fuel at ₦2,230 per litre and above, exceeding the regulator’s recommended range.
The NMDPRA had earlier advised that aviation fuel prices should fall within a band of ₦1,760 to ₦1,988 per litre in Lagos and about ₦2,037 per litre in Abuja, based on prevailing market conditions.
Industry stakeholders say the gap between the refinery’s gantry price and the market rate highlights persistent inefficiencies and pricing opacity in the distribution chain.
Chief Executive Officer of Petroleumprice.ng, Olatide Jeremiah, called for greater disclosure to address the issue.
“There is a lack of transparency in jet fuel pricing. Dangote Refinery should, as a matter of urgency, publish its daily jet fuel gantry prices,” he said.
“This would erode abnormal margins by middlemen and help curb artificial hikes in jet fuel prices that are threatening to cripple businesses in Nigeria’s aviation sector.”
Airline operators also expressed frustration over what they described as unchecked pricing practices by marketers.
Spokesperson for United Nigeria Airlines, Chibuike Uloka, said the situation reflects the realities of a deregulated market.
“It’s not a controlled market; it’s a free market. So, the NMDPRA cannot fix prices… it is only suggesting what the price should be,” Uloka said.
“But marketers are still selling at their own rates, and no one has been able to call them to order. This issue goes beyond United Nigeria Airlines; it affects all members of the Airline Operators of Nigeria.”
He added that the rising cost of aviation fuel has sharply increased operating expenses for carriers.
“The cost of fuel per operation rose from ₦2.9 million in January to ₦7.6 million. For operators like us that use Airbus aircraft, with higher fuel capacity and longer endurance, the cost is even double that figure,” he said.
The development is expected to intensify calls for stronger regulatory oversight and improved pricing transparency to stabilise the aviation sector and prevent further cost escalation for airlines.