FG Caps Jet Fuel Prices, Grants Airlines Credit Window After Shutdown Threat

The Federal Government has imposed price caps on aviation fuel and approved a 30-day credit window for airline purchases, moving to stave off widespread flight disruptions after operators warned of unsustainable cost surges.

A government document shows the Nigerian Midstream and Downstream Petroleum Regulatory Authority set Lagos price limits between ₦1,760 and ₦1,988 per litre, while Abuja benchmarks range from ₦1,809 to ₦2,037. The ceilings are pegged to costs recorded from April 17 to 23. The regulator cautioned that prices could still rise due to volatility tied to the US-Iran conflict and rising supplier expenses.

The intervention follows urgent talks triggered by airlines warning that jet fuel prices had spiked over 270 percent, forcing fare increases and threatening steep capacity cuts. Neither the NMDPRA nor the aviation ministry responded to requests for comment.

President Bola Tinubu had earlier approved a 30 percent relief on airline debts to aviation agencies and directed fuel marketers, carriers, and regulators to agree on a “fair” fuel price within 72 hours to prevent an industry shutdown.

Under the arrangement, airlines will receive a 30-day credit period for fuel payments. The aviation ministry has been tasked with mediating debt disputes between operators and oil marketers.

A technical committee convened by NMDPRA recommended that fuel marketers sell directly to airlines within the indicated price bands to reduce costs and improve supply-chain transparency. The committee also urged regulators to engage Dangote Petroleum Refinery and Petrochemicals over recently raised premiums on international benchmarks used to price jet fuel.

Additional recommendations include validating airside fuel distributors with adequate infrastructure, potentially trimming the number of approved suppliers at airports, and including jet fuel in the naira-for-crude initiative to cut airlines’ foreign exchange exposure.