Nigeria Caps Jet Fuel Prices to Prevent Airline Disruptions
Nigeria's government has introduced indicative jet fuel price caps in a bid to stabilise the country's aviation sector following a fuel cost surge of more than 270%, which had prompted fare increases and raised the risk of significant capacity cuts. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has set price benchmarks of between 1,760 and 1,988 naira per litre in Lagos and 1,809 to 2,037 naira in Abuja, while warning that ongoing market volatility linked to the US - Iran conflict could still push prices higher.
The measures, approved by President Bola Tinubu following emergency industry talks, include a 30-day credit window for airlines to purchase fuel, a 30% relief on airline debts to aviation agencies, and ministry-led mediation between operators and oil marketers. A technical committee has also recommended direct sales from fuel marketers to airlines to improve supply-chain transparency, engagement with the Dangote Petroleum Refinery over pricing premiums, and the consideration of jet fuel inclusion in Nigeria's naira-for-crude initiative to reduce foreign exchange exposure. The interventions signal growing government urgency to protect air connectivity across one of Africa's largest aviation markets.
Source: CNBC Africa