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FG Moves to Stabilise Aviation Fuel Supply, Sets Price Benchmarks

Soliu Oyesiji, April 27, 2026April 27, 2026

The federal government has taken steps to address persistent challenges in the supply and pricing of aviation fuel, proposing a price range and a set of measures aimed at stabilising the sector.

The intervention followed a high-level meeting convened by the Ministry of Aviation and Airspace Management on April 22 and 23, 2026, involving key stakeholders across the aviation and petroleum value chain, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), airline operators, and fuel marketers.

At the end of the deliberations, a technical committee was constituted to further examine the issues and recommend actionable solutions. The committee subsequently met on April 24 under the coordination of the NMDPRA.

In its recommendations released on April 26, the authority proposed an indicative end-user price of between ₦1,760 and ₦1,988 per litre in Lagos, and ₦1,809 to ₦2,037 per litre in Abuja.

According to the statement, “Following the engagements and current market fundamentals, we believe the indicative end-user price should range between ₦1,760 – ₦1,988 per litre and ₦1,809 – ₦2,037 per litre in Lagos and Abuja respectively.”

The agency explained that the pricing benchmark was based on international market indices, particularly Platts average prices recorded between April 17 and 23.

It added, “Products purchased outside this window may be higher due to high volatility in current prices precipitated by U.S.-Iran war and varying operational costs by operators.”

To improve supply efficiency, the authority recommended that fuel marketers sell directly to airline operators within the period.

“NMDPRA should direct marketers to sell directly to the airline operators within this period,” the statement said.

The committee also proposed measures to stabilise pricing, urging the regulator to engage refineries on cost adjustments.

“To ensure price stability, NMDPRA should engage DPRP to adjust the premium on Platts and cost variation element that was recently increased by the refinery,” it added.

The regulator was further advised to collaborate with aviation agencies, including the Federal Airports Authority of Nigeria (FAAN) and the Nigerian Civil Aviation Authority (NCAA), to streamline the number of airside fuel distributors.

“NMDPRA to work with FAAN and NCAA to validate airside distributors with infrastructure to trim the number of operators based on agreed criteria,” the statement noted.

In addition, the Ministry of Aviation was urged to facilitate dialogue between oil marketers and airline operators to resolve outstanding debts.

“The Ministry of Aviation should facilitate a consultative meeting between oil marketers and airline operators to resolve outstanding debts,” it said.

The recommendations also proposed a 30-day credit window for airlines to settle payments for supplied fuel.

“Marketers should consider a 30-day credit window for airlines to pay up for supplies made,” the statement added.

It further recommended the inclusion of aviation turbine kerosene under the federal government’s naira-for-crude initiative.

News airline operatorsFederal Airports Authority of Nigeria (FAAN)Ministry of Aviation and AirspaceNigerian Civil Aviation Authority (NCAA)Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)

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