Nigeria’s government is capping jet fuel prices and allowing airlines to buy supplies on credit, according to a government document seen by Reuters, as it tries to avert flight \u200bdisruptions caused by soaring fuel costs.<\/p>\n
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) \u200bsaid in the document that aviation fuel should sell for 1,760 \u2060naira to 1,988 naira ($1.29 to $1.46) per litre in Lagos and 1,809 naira to \u200b2,037 naira in Abuja, based on benchmarks from April 17 to April 23.<\/p>\n
It warned \u200bthat prices could still rise due to market volatility linked to the U.S.\u2013Iran conflict and higher supplier costs.<\/p>\n
The NMDPRA and aviation ministry did not immediately respond to a request for comment.<\/p>\n
The decision follows \u200bemergency talks after airlines warned that jet fuel prices had jumped by more \u200bthan 270%, forcing fare increases and raising the risk of\u00a0capacity cuts.<\/p>\n
President Bola Tinubu last week\u00a0approved \u200c30% relief \u2060on airlines’ debts to aviation agencies and ordered fuel marketers, airlines and regulators to agree on a “fair” fuel price within 72 hours to prevent a sector-wide shutdown.<\/p>\n
The talks also agreed to grant airlines a 30-day credit window to pay for fuel and \u200btasked the aviation \u200bministry with mediating debt \u2060disputes between operators and oil marketers, according to the document.<\/p>\n
A technical committee convened by the NMDPRA recommended that fuel marketers sell \u200bdirectly to airlines within the indicated price range to cut \u200bcosts and \u2060improve supply-chain transparency, the document said.<\/p>\n
The committee also urged regulators to engage Dangote Petroleum Refinery and Petrochemicals over recently increased premiums applied to international benchmarks used to price jet \u2060fuel.<\/p>\n
Other recommendations \u200binclude validating airside fuel distributors with adequate infrastructure – \u200bpotentially reducing the number of authorised suppliers at airports – and considering jet fuel for Nigeria’s naira-for-crude initiative to \u200blimit airlines’ foreign exchange exposure.<\/p>\n","protected":false},"excerpt":{"rendered":"
Nigeria’s government is capping jet fuel prices and allowing airlines to buy supplies on credit, according to a government document seen by Reuters, as it tries to avert flight \u200bdisruptions caused by soaring fuel costs. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) \u200bsaid in the document that aviation fuel should sell for 1,760 […]<\/p>\n","protected":false},"author":1,"featured_media":20647,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":3,"jnews-multi-image_gallery":[],"jnews_single_post":{"format":"standard","override":[{"template":"1","parallax":"1","fullscreen":"1","layout":"right-sidebar","sidebar":"default-sidebar","second_sidebar":"default-sidebar","sticky_sidebar":"1","share_position":"top","share_float_style":"share-monocrhome","show_featured":"1","show_post_meta":"1","show_post_author_image":"1","show_post_date":"1","post_date_format":"default","post_date_format_custom":"Y\/m\/d","show_post_reading_time":"0","post_reading_time_wpm":"300","post_calculate_word_method":"str_word_count","show_zoom_button":"0","zoom_button_out_step":"2","zoom_button_in_step":"3","show_post_tag":"1","show_comment_section":"1","number_popup_post":"1","show_post_related":"1","show_inline_post_related":"1"}],"image_override":[{"single_post_thumbnail_size":"crop-500","single_post_gallery_size":"crop-500"}],"trending_post_position":"meta","trending_post_label":"Trending","sponsored_post_label":"Sponsored by","disable_ad":"0","source_name":"Reuters","subtitle":""},"jnews_primary_category":[],"jnews_social_meta":[],"jnews_override_counter":{"view_counter_number":"0","share_counter_number":"0","like_counter_number":"0","dislike_counter_number":"0"},"footnotes":""},"categories":[2831,2362,27],"tags":[196,175,5064],"class_list":["post-20646","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","category-featured","category-west-africa","tag-bola-tinubu","tag-nigeria","tag-nigerian-midstream-and-downstream-petroleum-regulatory-authority-nmdpra"],"_links":{"self":[{"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/posts\/20646","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/comments?post=20646"}],"version-history":[{"count":1,"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/posts\/20646\/revisions"}],"predecessor-version":[{"id":20648,"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/posts\/20646\/revisions\/20648"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/media\/20647"}],"wp:attachment":[{"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/media?parent=20646"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/categories?post=20646"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/tags?post=20646"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}