NMDPRA moves to stabilize aviation fuel market through refinery price tracking

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Key Points

• The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) stated that the indicative gantry price from Dangote Refinery will help ensure market stability.
• Dangote Petroleum Refinery has fixed its gantry price for Aviation Turbine Kerosene (ATK) at N1,820 per litre.
• Despite NMDPRA advisory caps ranging from N1,760 to N2,037, some marketers continue to sell the product at N2,230 per litre and above.
• The regulator noted that daily price publications from the refinery will enable better monitoring and compliance during routine surveillance.
• Recent price hikes are attributed to global volatility and geopolitical tensions, specifically the U.S.–Iran crisis.

Main Story

The NMDPRA has announced that the introduction of transparent gantry pricing by the Dangote Refinery will serve as a critical benchmark for the aviation fuel market.

While petroleum products are officially deregulated, the regulator is using these indicative prices to curb excessive profiteering by oil marketers who have ignored previous price advisories.

The move is designed to ease the mounting overhead costs for airline operators and reduce the financial burden on passengers.

Mr. George Ene-Ita of the NMDPRA emphasized that the refinery’s daily price updates would support nationwide surveillance efforts. The regulator acknowledged that the refinery’s pricing is a necessary concession to prevent the truncation of aviation operations in Nigeria.

The current pricing framework is influenced by global benchmarks recorded in late April, though actual market rates continue to fluctuate due to international instability.

The Issues

• Oil marketers are reportedly selling Jet A1 fuel significantly above the NMDPRA’s recommended price range.
• High fuel costs are threatening the operational viability of domestic airlines and increasing ticket prices for Nigerians.
• Geopolitical tensions, particularly involving the U.S. and Iran, are driving up international oil benchmarks.

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• : In a deregulated market, the NMDPRA must balance fair pricing with free-market principles to ensure the sector remains attractive for investment.

What’s Being Said

“The Dangote refinery having released its latest indicative gantry prices… will enable us ensure tacit compliance by marketers and operators.” — Mr. George Ene-Ita, Director of Public Affairs, NMDPRA

“We are not unmindful of the fact that what the Dangote Refinery is doing is a concession to help ease overhead cost pressures.” — Mr. George Ene-Ita, Director of Public Affairs, NMDPRA

“The cost of Jet A1 fuel for end-users should range between N1,760 and N1,988 per litre in Lagos.” — NMDPRA Pricing Advisory

What’s Next

• Dangote Refinery will begin publishing its indicative gantry prices on a daily basis to provide market transparency.
• NMDPRA will intensify routine surveillance operations nationwide to enforce compliance with fair pricing standards.
• Airline operators are expected to monitor these benchmarks to negotiate better rates with their suppliers.
• The regulator will continue to track global oil market conditions, specifically fluctuations in Platts average figures, to update pricing frameworks.

Bottom Line

By leveraging refinery gantry prices as a monitoring tool, the NMDPRA aims to bridge the gap between refinery costs and end-user prices, providing much-needed relief to Nigeria’s struggling aviation industry.