NMDPRA Sets Jet Fuel Price Cap at ₦1,988 in Lagos, ₦2,037 in Abuja, Orders Direct Sales to Airlines

By John Ogunsemore

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has moved to rein in rising aviation fuel costs, announcing benchmark prices aimed at stabilising the market and easing mounting pressure on Nigeria’s airline operators.
In a directive issued after a technical committee meeting held on April 24, 2026, the Authority stated that the cost of Jet A1 fuel for end-users should range between ₦1,760 and ₦1,988 per litre in Lagos, and ₦1,809 to ₦2,037 per litre in Abuja.
The agency’s Authority Chief Executive, Saidu Mohammed, explained that the pricing framework was derived from Platts average figures recorded between April 17 and 23, 2026, reflecting prevailing global oil market conditions.
According to the regulator, while the benchmarks provide guidance for fair pricing, actual market prices may fluctuate outside the stated range depending on purchase timing and external factors. It specifically cited heightened global volatility driven by geopolitical tensions, including the ongoing U.S.–Iran crisis, as a key contributor to recent spikes in aviation fuel prices.
“The indicative prices are based on established international benchmarks. However, products sourced outside the referenced window may attract higher costs due to volatility and varying operational expenses across the supply chain,” the Authority noted.
Direct Sales, Fewer Middlemen
In what could significantly reshape the aviation fuel supply chain, NMDPRA directed that marketers should sell aviation fuel directly to airline operators. The move is expected to eliminate layers of intermediaries often blamed for arbitrary price inflation and opaque pricing practices.
Industry analysts say the directive, if strictly enforced, could improve price transparency and reduce operational costs for airlines already grappling with foreign exchange pressures, maintenance costs, and shrinking profit margins.
Review of Pricing Components
The Authority also revealed plans to engage relevant stakeholders to reassess key pricing elements. This includes working with the Domestic Refinery Price Review (DPRP) framework to adjust the premium on Platts and review cost variation components that were recently increased by local refineries.
This step is seen as crucial in aligning domestic pricing structures with international realities while preventing excessive cost transfers to airlines.
Airside Distribution Audit
As part of broader reforms, the NMDPRA disclosed plans to collaborate with the Federal Airports Authority of Nigeria (FAAN) and the Nigerian Civil Aviation Authority (NCAA) to audit and validate airside fuel distributors.
The exercise will assess operators based on infrastructure capacity and operational efficiency, with the likelihood of trimming down the number of active distributors at airports nationwide.
The move is aimed at eliminating inefficiencies, improving service delivery, and ensuring that only qualified and adequately equipped operators remain in the system.
Relief for Airlines, Passengers
The intervention comes at a critical time for Nigeria’s aviation industry, where fuel costs account for a substantial portion of airline operating expenses. Persistent increases in Jet A1 prices have forced airlines to adjust ticket fares upward, triggering concerns among passengers and industry stakeholders.
By setting price benchmarks and restructuring the supply chain, the regulator is seeking to restore stability, enhance transparency, and ultimately protect consumers from escalating travel costs.
Stakeholders believe that sustained enforcement of these measures could improve confidence in the aviation sector, encourage fair competition among marketers, and provide much-needed relief to both airlines and the flying public.
NMDPRA sets aviation fuel price benchmarks at ₦1,988 in Lagos and ₦2,037 in Abuja, mandates direct sales to airlines, and moves to streamline airport fuel distribution.