FG sets jet fuel price band, pushes credit deal for airlines

The Federal Government has asked aviation fuel marketers to grant airline operators a 30-day credit window and sell jet fuel directly to them, as part of emergency measures to address Nigeria’s worsening aviation fuel shortage and price surge.

The resolution emerged from high-level stakeholder engagements convened by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), following a meeting called by the Minister of Aviation and Airspace Management on April 22-23, 2026.

The session brought together representatives from the Ministries of Aviation and Petroleum Resources, the Federal Airports Authority of Nigeria (FAAN), the Nigerian Airspace Management Agency, the Nigerian Civil Aviation Authority (NCAA), airline operators and fuel marketers.

Stakeholders agreed on a new indicative pricing band for Aviation Turbine Kerosene, pegging the end-user price at between N1,760 and N1,988 per litre in Lagos, and N1,809 to N2,037 per litre in Abuja. The benchmarks were derived from Platts average prices recorded between April 17 and 23, 2026.

The meeting warned that prices could rise further outside that window, citing volatility driven by the U.S.-Iran conflict and varying operational costs.

To stabilise prices, the NMDPRA was directed to engage the Department of Petroleum Resources and Policy to review the premium on Platts and a cost variation element recently increased by the refinery.

The committee also recommended that regulatory agencies reduce the number of airside fuel distributors to only those with verifiable infrastructure and capacity, with NMDPRA directed to work with FAAN and NCAA to validate eligible operators.

On the issue of mounting debts between airlines and marketers, the Ministry of Aviation was tasked with facilitating a consultative meeting between both parties to resolve outstanding obligations.

The committee further recommended the inclusion of Aviation Turbine Kerosene under the Federal Government’s naira-for-crude initiative, aimed at reducing dependence on foreign exchange and stabilising petroleum product costs.