The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has stated that the indicative gantry price for aviation fuel released by Dangote Refinery is expected to ensure market stability and compliance among marketers.
Mr. George Ene-Ita, Director of Public Affairs at NMDPRA, confirmed this in an interview with the News Agency of Nigeria (NAN) in Abuja. His statement comes in response to concerns raised about the high cost of Aviation Turbine Kerosene (ATK), commonly known as aviation fuel or Jet A1 fuel.
Dangote Petroleum Refinery has established its gantry price for ATK at N1,820 per litre, a move intended to foster greater transparency within the sector. This development occurs amidst significant concerns from Nigerians and airline operators regarding the escalating cost of aviation fuel and its substantial impact on the aviation industry.
Earlier, NMDPRA had implemented measures to ensure market stability and fair pricing, including setting a price cap for Jet A1 fuel for end-users. The directive aimed for sales directly to airlines, with prices ranging from N1,760 to N1,888 per litre in Lagos and N1,809 to N2,037 per litre in Abuja.
However, oil marketers have reportedly continued to sell aviation fuel to airlines at prices of N2,230 per litre and above, exacerbating the challenges faced by Nigeria's aviation sector.
Ene-Ita noted that while petroleum product prices have been deregulated, Dangote Refinery's indicative gantry price will significantly aid NMDPRA's monitoring efforts. The refinery has committed to publishing these prices daily.
“All petroleum product prices have been deregulated. However, with particular emphasis on ATK, the Dangote refinery, having released its latest indicative gantry prices, which they promised to publish daily going forward, will enable us to ensure tacit compliance by marketers and operators during our routine surveillance operations nationwide,” he stated.
He added that Dangote Refinery's action is a concession to help alleviate overhead cost pressures within the aviation sector, aiming to prevent operational disruptions. NMDPRA has pledged to support this initiative to ensure Nigerians benefit from the gesture.
The NMDPRA's pricing framework is based on Platts average figures from April 17 to April 23, reflecting current global oil market conditions. The regulator acknowledged that actual market prices might deviate from the stated ranges due to factors such as purchase timing and heightened global volatility, citing geopolitical tensions as a contributor to recent price hikes.
