For weeks, Nigeria’s airlines warned that rising fuel costs could disrupt flights and strain operations.
In response, the Federal Government introduced measures to stabilise the aviation sector.
Rising Jet fuel pressure
After emergency talks with marketers and operators, regulators capped jet fuel prices and offered credit.
Meanwhile, the Nigerian Midstream and Downstream Petroleum Regulatory Authority outlined the plan to ease pressure.
Earlier, President Bola Tinubu approved support to reduce airline debt burdens.
Price Cap And Credit Relief
Under the new policy, authorities now guide fuel prices using April benchmark ranges.
In Lagos, marketers will sell fuel between ₦1,760 and ₦1,988 per litre.
Similarly, in Abuja, marketers will sell fuel between ₦1,809 and ₦2,037 per litre.
Airlines can now buy fuel on credit and repay within 30 days.
In addition, regulators urged both sides to agree on fair pricing within the range.
A committee also proposed direct fuel sales from marketers to airlines to cut costs.
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As a result, the plan removes intermediaries and improves transparency in the supply chain.
Global Pressures And Next Steps
Airlines have struggled as jet fuel prices surged by over 270%.
Consequently, operators increased ticket fares to manage rising costs.
At the same time, global tensions pushed fuel prices even higher.
For instance, disruptions near the Strait of Hormuz affected a major energy route.
Notably, this route carries about 20% of global energy shipments.
As a result, rising benchmarks like Platts increased fuel costs despite local supply.
Looking ahead, the government is considering adding jet fuel to the naira-for-crude initiative.
This step could reduce airlines’ exposure to foreign exchange pressures.
Meanwhile, officials plan to engage the Dangote Petroleum Refinery on pricing concerns.
They also aim to improve airport fuel distribution systems for better efficiency.
Overall, these steps aim to reduce costs and maintain stability in Nigeria’s aviation sector.
