NMDPRA Caps Aviation Fuel Price Between ₦1,960 And ₦2,800 Per Litre

NMDPRA Caps Aviation Fuel Price Between ₦1,960 and ₦2,800 Per Litre The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced a price cap on Aviation Turbine Kerosene (ATK), commonly known as aviation fuel, fixing the approved range between ₦1,960 and ₦2,800 per litre nationwide. The regulatory authority disclosed the development while addressing concerns from airline operators over rising operational costs linked to fluctuating aviation fuel prices. According to the agency, the price benchmark is aimed at stabilising the aviation sector, preventing excessive pricing, and ensuring sustainable fuel supply across Nigerian airports.

NMDPRA stated that the price band was introduced following consultations with stakeholders in the downstream petroleum and aviation industries. The regulator emphasised that aviation fuel pricing must reflect market realities while protecting airlines from arbitrary price hikes that could worsen airfare costs for passengers. Officials noted that aviation fuel remains one of the largest cost components for airlines, accounting for a significant portion of operating expenses. The authority explained that while fuel prices are influenced by global crude oil trends, exchange rates, logistics costs, and supply dynamics, regulatory intervention became necessary to maintain stability. By setting a price range rather than a fixed amount, NMDPRA said marketers retain flexibility while operating within acceptable limits designed to prevent exploitation.

Industry observers believe the new pricing framework could ease pressure on domestic carriers that have repeatedly warned about the impact of soaring aviation fuel costs on ticket prices and flight operations. Airlines have previously cited high ATK prices as a major factor behind route reductions, flight delays, and increased fare

NMDPRA assured that it will closely monitor compliance nationwide and collaborate with fuel marketers, depot owners, and airport suppliers to ensure adherence to the approved pricing band.

The regulator added that enforcement measures would be applied against operators found selling aviation fuel outside the stipulated range. The price cap is expected to provide short-term stability in Nigeria’s aviation industry, though experts say long-term solutions will depend on improved local refining capacity, stable foreign exchange availability, and consistent energy policies.