The Federal Government has projected that aviation fuel
prices could range between N1,760 and N2,037 per litre, following high-level
engagements aimed at addressing persistent supply and pricing challenges in the
sector.
The projection emerged after a meeting convened by the
Minister of Aviation and Airspace Management on April 22 and 23, 2026,
involving key stakeholders across the aviation and petroleum value chain.
Participants at the meeting included officials of the
Ministry of Aviation, Ministry of Petroleum Resources, the Nigerian Midstream
and Downstream Petroleum Regulatory Authority (NMDPRA), Federal Airports
Authority of Nigeria, Nigerian Airspace Management Agency, Nigerian Civil
Aviation Authority, airline operators and aviation fuel marketers.
The meeting resolved to constitute a technical committee to
further examine the issues and propose practical solutions.
Subsequently, the NMDPRA convened the committee on April 24,
2026, where key recommendations were made to stabilise the market and ensure
sustainable supply.
According to the committee, the indicative end-user price of
aviation turbine kerosene (ATK) is expected to range between N1,760 and N1,988
per litre in Lagos, and between N1,809 and N2,037 per litre in Abuja. The
pricing benchmark was based on Platts average rates recorded between April 17
and 23, 2026.
The committee noted that prices may fluctuate outside the
stated range due to market volatility, including geopolitical tensions and
varying operational costs among suppliers.
To improve efficiency in distribution, the committee
recommended that the NMDPRA should direct marketers to sell aviation fuel
directly to airline operators within the specified period.
It also called for regulatory engagement to review pricing
components, including premium adjustments and cost variations recently
introduced by refineries, with a view to ensuring price stability.
In addition, the committee advised closer collaboration
between the NMDPRA, FAAN and NCAA to streamline airside operations by
validating distributors with adequate infrastructure and reducing the number of
operators based on agreed criteria.
On the issue of mounting debts within the sector, the
Ministry of Aviation was urged to facilitate a consultative meeting between oil
marketers and airline operators to resolve outstanding obligations.
The committee further recommended that marketers consider
introducing a 30-day credit window to ease financial pressure on airlines.
It also proposed the inclusion of aviation fuel under the
Federal Government’s naira-for-crude initiative as part of broader efforts to
stabilise supply and pricing in the sector.
By
TheTimes Nigeria
