Dangote Petroleum Refinery has announced a gantry price of ₦1,820 per litre for aviation fuel, a move aimed at improving transparency and ilizing pricing within Nigeria’s aviation sector.
The decision comes as airline operators continue to grapple with rising fuel costs, which have significantly increased operational expenses. Despite advisory guidance from the Nigerian Midstream and Downstream Petroleum Regulatory Authority, marketers have continued to sell aviation fuel at prices as high as ₦2,230 per litre, well above the recommended range.
The regulator had earlier suggested a pricing band of ₦1,760 to ₦1,988 per litre in Lagos and around ₦2,037 per litre in Abuja, based on prevailing market conditions. This guidance followed consultations with key stakeholders, including airline operators, depot owners, and fuel marketers, in a bid to address ongoing disputes over pricing.
However, findings indicate that actual market transactions still exceed these benchmarks, raising concerns about price control and enforcement in what industry players describe as a largely deregulated market.
Speaking on the issue, Olatide Jeremiah, CEO of Petroleumprice.ng, emphasized the need for greater transparency, urging the refinery to publish daily gantry prices to reduce excessive profit margins by intermediaries and prevent artificial price inflation.
Airlines have also voiced their frustrations. A spokesperson for United Nigeria Airlines noted that the lack of effective regulation has allowed marketers to operate freely without adhering to recommended prices. The airline added that the surge in aviation fuel costs has had a severe impact on operations across the industry.
The broader implication is a growing financial strain on airlines, with fuel expenses rising sharply in recent months. Operators warn that if the situation persists, it could affect ticket pricing, route availability, and overall sustainability of air travel in Nigeria.
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