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Dangote Refinery’s Indicative Pricing Brings Stability to Nigeria’s Volatile Aviation Fuel Market

 

For months, Nigeria’s aviation sector has been buffeted by opaque pricing and mounting operational costs. Airline operators have struggled with Aviation Turbine Kerosene (ATK), commonly known as jet fuel, where prices soared past N2,230 per litre—far above regulatory guidance—deepening concerns across the industry.

 

That uncertainty is now being met with a mechanism for transparency. On May 2, 2026, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) confirmed that the Dangote Petroleum Refinery has fixed its gantry price for ATK at N1,820 per litre, a strategic move designed to stabilise the market and ensure marketer compliance.

 

While petroleum product prices have been fully deregulated, the NMDPRA acknowledged that Dangote’s daily publication of indicative gantry prices represents a significant concession to the aviation sector.

 

Mr. George Ene-Ita, Director of Public Affairs at NMDPRA, stated in an interview with the News Agency of Nigeria (NAN) on Saturday: “All petroleum product prices have been deregulated. However, with particular emphasis on ATK, the Dangote refinery, having released its latest indicative gantry prices… will enable us to ensure tacit compliance by marketers and operators during our routine surveillance operations nationwide.”

 

He added: “We are not unmindful of the fact that what the Dangote Refinery is doing is a concession to help ease overhead cost pressures in the Aviation sector in order not to truncate its operations. So, we will play our part to see that Nigerians benefit from the gesture.”

 

The NMDPRA had previously issued an advisory price cap for Jet A1 fuel, recommending a range of N1,760 to N1,988 per litre in Lagos and N1,809 to N2,037 per litre in Abuja. However, marketers continued selling to airlines at prices around N2,230 per litre and above, ignoring the guidance.

 

The new indicative gantry price from Dangote—N1,820 per litre—falls within the lower band of the regulator’s framework. According to the NMDPRA, the pricing benchmark was derived from Platts average figures recorded between April 17 and 23, reflecting prevailing global oil market conditions.

 

The regulator noted that while actual market prices may fluctuate depending on purchase timing and external factors, the Dangote announcement provides a credible reference point. It also cited heightened global volatility driven by geopolitical tensions, including the ongoing U.S.–Iran crisis, as a key contributor to recent price hikes.

 

The importance of this development is twofold. First, for airline operators, transparent gantry pricing reduces uncertainty in fuel budgeting—a major operational cost that directly affects ticket prices for passengers. Second, for the broader economy, a stable aviation sector is essential for business travel, cargo logistics, and international connectivity.

 

By publishing daily indicative prices, Dangote is effectively creating a market anchor. The NMDPRA has now committed to using its surveillance operations to enforce tacit compliance, signalling that the era of unchecked mark-up may be ending.

 

As Mr. Ene-Ita affirmed, the regulator will play its part to ensure Nigerians benefit. Whether marketers abide by that directive will determine if this stability becomes permanent or remains a temporary reprieve.

Oniyide Emmanuel

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