The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said the indicative gantry price for aviation fuel released by Dangote Refinery will ensure market stability and compliance by marketers.
The Director, Public Affairs, NMDPRA, George Ene-Ita, made this known during an interview in Abuja on Saturday.
Mr Ene-Ita was reacting to the pricing and high cost of Aviation Turbine Kerosene (ATK), known as aviation fuel or Jet A1 fuel.
The Dangote Petroleum Refinery currently fixed its gantry price of ATK at N1,820 per litre, a move aimed at enhancing transparency in the sector.
This development comes at a time when Nigerians and airline operators have raised concerns over the high cost of the product and its heavy impact on the aviation industry.
In a move to ensure market stability, fair pricing and ease mounting pressure on airline operators and passengers, NMDPRA had earlier set jet fuel price cap for marketers, ordering direct sales to airlines.
The NMDPRA issued a directive that the cost of Jet A1 fuel for end-users should range between N1,760 and N1,988 per litre in Lagos, and N1,809 to N2,037 per litre in Abuja.
Despite the advisory guidance from the NMDPRA, oil marketers have continued to sell aviation fuel to airlines at N2,230 per litre and above, deepening concerns across Nigeria’s aviation sector.
Mr Ene-Ita said though petroleum product prices had been deregulated, the latest indicative gantry price for ATK disclosed by the refinery would further support its monitoring efforts.
He said, “All petroleum product prices have been deregulated. However, with particular emphasis on ATK, the Dangote refinery having released its latest indicative gantry prices, which they promised to publish daily going forward, will enable us ensure tacit compliance by marketers and operators during our routine surveillance operations nationwide.
“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 pricing framework was derived from Platts average figures recorded between April 17 and 23, reflecting prevailing global oil market conditions.
According to the regulator, while the benchmarks provide guidance for fair pricing, actual market prices may fluctuate outside the stated range depending on purchase timing and external factors.
It specifically cited heightened global volatility driven by geo-political tensions, including the ongoing U.S.–Iran crisis, as a key contributor to recent hike in aviation fuel prices.
(NAN)
