Dangote Refinery sets aviation fuel price at ₦1,820 per litre as airlines battle rising costs in Nigeria 

• Dangote Refinery fixed Jet A1 gantry price at ₦1,820 per litre to improve transparency in Nigeria’s aviation fuel market.

• Despite guidance from Nigerian Midstream and Downstream Petroleum Regulatory Authority, marketers still sell aviation fuel around ₦2,230 per litre.

• Airline operators say the pricing gap is increasing operational costs and putting pressure on flight operations nationwide.

• Industry stakeholders warn that without clearer pricing and supply reforms, high fuel costs could continue to push up airline expenses and airfares.

Nigeria’s aviation fuel pricing crisis has taken a new turn as Dangote Petroleum Refinery announced a gantry price of ₦1,820 per litre for Jet A1, a move many see as an attempt to bring more transparency into the market.

The development comes amid growing complaints from airline operators who say the rising cost of aviation fuel is putting serious pressure on their operations. Despite guidance from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), marketers are still selling the product at significantly higher prices.

The regulator had earlier suggested a benchmark range of ₦1,760 to ₦1,988 per litre in Lagos and around ₦2,037 per litre in Abuja, based on market conditions such as import costs and exchange rates. That guidance followed meetings with key stakeholders across the aviation and petroleum value chain, including airlines, depot owners, and fuel marketers.

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However, checks show that airlines are still buying aviation fuel at about ₦2,230 per litre or more, well above the recommended band. This gap has continued to raise concerns about pricing practices and the role of middlemen in the supply chain.

The CEO of Petroleumprice.ng, pointed directly at the lack of pricing clarity. He said, “There is a lack of transparency in jet fuel pricing. Dangote Refinery should, as a matter of urgency, publish its daily jet fuel gantry prices. This would erode abnormal margins by middlemen and help curb artificial hikes in jet fuel prices that are threatening to cripple businesses in Nigeria’s aviation sector.”

Airline operators also argue that the issue goes beyond regulation, pointing to the nature of the market itself. Chibuike Uloka, spokesperson for United Nigeria Airlines, explained: “It’s not a controlled market; it’s a free market. So, the NMDPRA cannot fix prices. Rather, based on its findings and market assessments—such as landing cost and other factors, it is only suggesting what the price should be.

He added, “But marketers are still selling at their own rates, and no one has been able to call them to order. This issue goes beyond United Nigeria Airlines; it affects all members of the Airline Operators of Nigeria (AON), not just a single airline.”

The financial strain is already visible. According to Uloka, “If we are to speak on how this affects us, we can say, as Ibom Air earlier noted, that the cost of fuel per operation rose from ₦2.9 million in January to ₦7.6 million. For operators like us that use Airbus aircraft, with higher fuel capacity and longer endurance, the cost is even double that figure.”

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Jet fuel, also known as Jet A1, typically accounts for a major portion of airline operating costs globally, often between 30% and 40%. In Nigeria, where most aviation fuel has historically been imported, fluctuations in foreign exchange and supply chain inefficiencies have made pricing even more volatile.

Industry observers say the entry of local refining capacity, particularly from Dangote Refinery, could help stabilise supply in the long term. But for now, airlines say the disconnect between official guidance and real market prices continues to threaten profitability, and could eventually impact ticket fares for passengers.