Nigeria’s aviation industry remains under intense pressure as the cost of Jet A1 continues to climb, despite the Federal Government’s latest intervention to cap prices. The development has deepened concerns among domestic carriers, many of whom say soaring fuel costs are pushing operations to the brink.
The federal government has recently approved a benchmark pricing framework for aviation fuel, setting a range of ₦1,760 to ₦1,988 per litre in Lagos and ₦1,809 to ₦2,037 per litre in Abuja. It also introduced a 30-day credit window to ease the financial burden on airlines struggling with mounting operating expenses.
However, market realities suggest the policy may offer only temporary relief. While the price cap is intended to stabilise the sector, supply remains tight, and actual market prices in some locations continue to test the upper limits of the approved band.
Airline operators say the mismatch between regulated pricing and real supply conditions is becoming increasingly difficult to manage. For many carriers, fuel now accounts for the single largest component of operating costs, placing enormous strain on cash flow and route economics.
Industry concerns have been heightened by the sharp rise in global oil prices, driven largely by escalating tensions in the Middle East and disruptions around the Strait of Hormuz. The resulting increase in international pricing benchmarks has pushed up aviation fuel replacement costs, even for products sourced locally.
Checks by Petroleumprice.ng indicate that Jet A1 supply remains tight across Lagos, with availability concentrated among a limited number of marketers, while in some cases prices are being quoted well above competitive levels due to scarcity and elevated replenishment costs. Despite the Federal Government’s intervention, aviation fuel prices remain elevated, as data from the Dangote refinery loading gantry in Lagos shows Jet A1 sold at ₦2,230 per litre on April 28, up from the previous day, highlighting persistent supply constraints and a widening gap between the government’s benchmark pricing framework and prevailing market realities.
This tightening supply environment has renewed calls for deeper reforms in the aviation fuel supply chain. Stakeholders are pushing for direct sales arrangements, improved distribution efficiency and broader inclusion of Jet A1 in the naira-for-crude framework.
For airlines already grappling with foreign exchange pressures, high taxes and rising maintenance costs, the stakes are high. Unless supply improves and pricing stabilises, operators warn that service cuts, higher fares and even temporary shutdowns could become unavoidable.