The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has expressed confidence that the newly announced gantry price for aviation fuel by the Dangote Petroleum Refinery will promote market stability, ensure regulatory compliance, and ease mounting pressure within Nigeria’s aviation sector.
Speaking in Abuja on Saturday, the Director of Public Affairs at the authority, Mr George Ene-Ita, told the News Agency of Nigeria that the pricing framework introduced by the refinery aligns with ongoing regulatory efforts to bring transparency and fairness to the downstream petroleum market.
Ene-Ita’s remarks come in response to widespread concerns over the rising cost of Aviation Turbine Kerosene (ATK), commonly referred to as Jet A1 fuel, which has significantly increased operational expenses for airlines and, by extension, ticket prices for passengers.
The Dangote Refinery recently pegged its gantry price for Jet A1 fuel at N1,820 per litre, a move industry stakeholders say could serve as a benchmark for pricing in the domestic market. Analysts note that the decision is particularly significant given the refinery’s scale and expected influence on supply dynamics across the country.
According to Ene-Ita, the pricing initiative is consistent with the regulator’s broader mandate to create a stable and predictable market environment. He explained that by setting clear price expectations, the authority aims to curb arbitrary pricing practices while ensuring that marketers operate within approved thresholds.
“The indicative gantry price is a step in the right direction. It provides clarity to marketers and supports compliance with regulatory frameworks designed to protect both operators and consumers,” he said.
The development comes amid sustained pressure from airline operators who have repeatedly warned that the high cost of aviation fuel, often accounting for over 40 per cent of operational expenses, poses a serious threat to the sustainability of the industry.
In a bid to address these concerns, the NMDPRA had earlier introduced a price cap for Jet A1 fuel, directing marketers to sell directly to airline operators. Under the directive, the approved price range for Lagos is between N1,760 and N1,988 per litre, while Abuja prices are set between N1,809 and N2,037 per litre.
Industry observers believe that the Dangote Refinery’s pricing falls within this regulatory band, reinforcing the effectiveness of the authority’s intervention.
Airline operators, while cautiously optimistic, have continued to call for further measures to reduce costs, including improved access to foreign exchange and enhanced local refining capacity. Some stakeholders argue that increased domestic production of aviation fuel could significantly reduce dependence on imports, thereby stabilising prices in the long term.
Meanwhile, passengers have not been spared the ripple effects of high fuel costs, with many airlines adjusting fares upward to offset rising expenses. The situation has sparked broader conversations about affordability and accessibility within Nigeria’s aviation sector.
Ene-Ita reiterated the authority’s commitment to monitoring the market closely, ensuring compliance among marketers, and engaging stakeholders to maintain equilibrium in pricing and supply.
“As a regulator, our priority is to ensure a balance, protecting consumers while enabling businesses to operate sustainably. The current pricing structure is part of a broader strategy to achieve that balance,” he stated.
With the Dangote Refinery expected to play a central role in Nigeria’s energy landscape, stakeholders say its pricing decisions could shape the future trajectory of the aviation fuel market, potentially ushering in a new era of stability and transparency.
