An oil sector advocacy group, the Centre for Energy Market Integrity and Sustainability, has commended the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for stabilising the aviation fuel market.
The group said the regulator’s recent intervention helped to ease tensions within the aviation sector and prevented a potential disruption to air travel operations.
In a statement issued on Tuesday, CEMIS said the regulator’s clarification on Jet A1 fuel availability and pricing came at a critical time when uncertainty had heightened anxiety among airline operators.
The statement, signed by the centre’s Executive Director, Tunde Adeyemi, noted that confirmation of over 70 days of aviation fuel sufficiency reflected a strong supply position.
Adeyemi said the regulator’s data-driven disclosure helped to counter speculation about a possible surge in aviation fuel prices.
He said, “The timely intervention by the Authority provided much-needed clarity and helped to calm frayed nerves within the aviation ecosystem.
“At a time when misinformation could easily have escalated into a crisis, the regulator chose transparency and facts, which is commendable.”
The group emphasised that aviation fuel remains a major cost driver for airlines, making price stability essential for the sector’s sustainability.
Adeyemi explained that the deregulated nature of the Jet A1 market means pricing is influenced by global oil prices, foreign exchange fluctuations, and logistics costs.
He said, “It is essential for industry players to understand that aviation fuel pricing is not arbitrary but driven by market dynamics.
“What the regulator has done is to provide a clear picture of the situation, which helps to guide informed decision-making.”
CEMIS also highlighted the role of local refining in moderating aviation fuel prices, describing it as a positive development.
The group noted that locally refined aviation fuel being sold slightly below international benchmarks indicates growing domestic capacity and reduced exposure to external shocks.
The group urged stakeholders to avoid spreading unverified claims that could destabilise the market.
It said, “Responsible engagement is critical at this time. All parties must work together to sustain stability and ensure that the gains recorded are not reversed by panic or misinformation.”
CEMIS called on the Federal Government to continue supporting regulatory institutions, stressing that effective oversight and consistent policies are key to sustaining progress.
The group maintained that the NMDPRA’s intervention underscores the importance of strong regulation in safeguarding economic activities and public confidence, particularly in interconnected sectors like energy and aviation.
SOURCE: NewsNaija