The Federal Government has established a new indicative price range for Aviation Turbine Kerosene (ATK), commonly known as jet fuel, as part of a strategic intervention to stabilize the aviation sector and address a mounting debt crisis between airlines and fuel marketers.
Following high-level technical committee meetings convened by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Ministry of Aviation on April 22 and 24, 2026, the government projected that fuel prices should now range between N1,760 and N1,988 per litre in Lagos and between N1,809 and N2,037 per litre in Abuja.
These benchmarks are based on Platts average rates recorded between April 17 and 23, 2024, though the committee cautioned that prices remain susceptible to market volatility driven by ongoing geopolitical tensions, specifically citing the conflict between the United States and Iran.
To streamline the supply chain and reduce costs, the NMDPRA has recommended that marketers sell fuel directly to airline operators.
This move is accompanied by a call for regulatory engagement with refineries to review and adjust premium pricing components and recently introduced cost variations.
The committee also urged marketers to consider implementing a 30-day credit window for fuel supplies.
The intervention also seeks to address structural inefficiencies within airport operations. The committee advised a collaborative effort between the NMDPRA, the Federal Airports Authority of Nigeria (FAAN), and the Nigeria Civil Aviation Authority (NCAA) to validate airside distributors.
This process aims to ensure that only operators with adequate infrastructure remain active, effectively trimming the number of players to enhance service delivery.
Beyond immediate pricing, the Federal Government is exploring long-term stability measures, including the proposal to include aviation fuel under the “naira-for-crude” initiative.
This broader economic strategy is intended to decouple the local fuel market from extreme foreign exchange fluctuations.
Addressing the financial strain currently paralyzing segments of the industry, the Ministry of Aviation has been tasked with facilitating a consultative meeting between oil marketers and airlines.
This dialogue is intended to resolve outstanding debt obligations that have previously threatened to ground operations.