Middlemen Drive Jet A1 Prices to N2,230/Litre, Prompt Calls for Fuel Bailout

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) set a price band of N1,760‑N1,988 per litre for Lagos and about N2,037 per litre for Abuja. Market checks show oil marketers still charge N2,230 per litre, a gap that threatens airline profitability.

Aviation fuel prices have more than tripled since February, climbing from roughly N900 per litre to between N3,000 and N3,300 per litre by mid‑April, according to the Aviation Round Table Initiative (ASRTI). The steep rise reflects strong demand for Jet A1 and the profit margins added by multiple intermediaries between depots and airlines.

Dangote Petroleum Refinery, which holds commercial stock of Jet A1, lists a gantry price— the price at the refinery gate— of about N1,800 per litre. Intermediaries lift that price to N2,230 or higher before it reaches carriers, creating a disparity that regulators have struggled to close.

Industry voices are converging on the need for transparency. Olatide Jeremiah, CEO of Petroleumprice.ng, urged Dangote to publish daily gantry prices to curb “abnormal margins” and protect the aviation sector. Capt Ado Sanusi of Aero Contractors echoed the call, saying airlines need a clear benchmark for landing and transportation costs.

Airlines report operational cost spikes. United Nigeria Airlines’ spokesperson noted that a typical flight now costs N7.6 million in fuel, up from N2.9 million earlier in the year. Ibom Air faces similar pressures, with fuel expenses doubling for aircraft that rely on longer-range capabilities.

ASRTI has escalated the issue, recommending an urgent bailout for domestic carriers to offset the fuel shock. Without intervention, airlines risk raising ticket prices or reducing routes, which could erode passenger volumes and broader economic activity.

What it means: The persistent price gap highlights structural inefficiencies in Nigeria’s fuel distribution chain and the limits of regulatory guidance in a market‑driven environment. Transparency in refinery pricing and targeted financial relief appear essential to stabilise airline costs.

What to watch: The government’s response to ASRTI’s bailout request and any move by Dangote to disclose daily gantry prices will shape the next phase of the fuel dispute.