Business News of Sunday, 4 October 2026

Source: www.punchng.com

Airlines get 749m litres jet fuel amid supply swings

Operating airlines in Nigeria received an estimated 749.2 million litres of aviation fuel between January and August 2026, as domestic deliveries fluctuated significantly during the period, according to an analysis of the Nigerian Midstream and Downstream Petroleum Regulatory Authority’s monthly fact sheet.

The data analysed on Friday showed that domestic aviation turbine kerosene receipts averaged about 3.1 million litres daily over the eight months, with supplies falling to 1.6 million litres per day in February before recovering to 3.1 million litres per day in August.

The report read, “749.2 million litres of aviation fuel were supplied to airlines between January and August 2026. The data showed that domestic aviation turbine kerosene receipts averaged about 3.1 million litres daily during the eight months, falling to 1.6 million litres daily in February before recovering to 3.1 million litres in August.”

The figures highlight the uneven pattern of domestic aviation fuel deliveries at a time when reliable fuel availability remains important to airline operations, flight scheduling and the cost of air travel.

Recent disruptions that stranded passengers, particularly in Abuja, have been linked to debts airline operators owe fuel marketers, even as operators lament the rising cost of Jet A1 aviation fuel.

At the peak of the Middle East crisis, the price of aviation fuel peaked at N3,500, from N900 per litre sold before the US-Israel attacks on Iran at the end of February, but it came down to N2,500, according to the Airline Operators of Nigeria, and has remained around that price ever since.

The airlines have said variously that fuel now accounts for 45 per cent to 50 per cent of total operating expenses for local carriers. Airline chief executives, including Air Peace founder Dr Allen Onyema, disclosed that a single flight that previously required N3m worth of fuel now demands between N12m and N13m.

The airline also attributed flight disruptions at the Nnamdi Azikiwe International Airport, Abuja, to the unavailability of Jet A1 aviation fuel.

A breakdown of the figures showed that domestic receipts stood at six million litres daily in January, translating to about 186 million litres for the month. Deliveries subsequently plunged to 1.6 million litres daily in February, equivalent to approximately 44.8 million litres.

Supply improved to 2.1 million litres per day in March, amounting to 65.1 million litres, before rising to three million litres daily in April, or 90 million litres for the month.

The upward movement continued in May, when domestic receipts increased to 4.3 million litres per day, representing approximately 133.3 million litres. However, the improvement proved temporary, as supplies fell to 2.5 million litres daily in June, equivalent to 75 million litres.

The decline continued in July, with receipts dropping to 1.9 million litres per day, or about 58.9 million litres for the month, before recovering to 3.1 million litres daily in August, representing approximately 96.1 million litres.

Based on the monthly daily averages and the number of calendar days in each month, the estimated cumulative supply for January to August was 749.2 million litres. The calculation represents domestic receipts, not total national availability, since the supplied figures do not include a corresponding breakdown of imported aviation fuel.

The data also showed that domestic receipts were highly volatile across the wider 13-month period covering August 2025 to August 2026.

In December 2025, daily receipts surged to 14 million litres, the highest monthly figure recorded in the period. This was followed by a sharp fall to six million litres daily in January 2026 and 1.6 million litres in February.

The December figure was substantially above the reported 3.9 million litres daily programme average for the 13-month period, although the available data do not establish the reason for the exceptional increase.

The lowest recorded daily receipts were 1.6 million litres in September 2025 and February 2026. Deliveries stood at 3.5 million litres daily in August 2025, fell to 2.7 million litres in October, and were not reported for November in the supplied table.

By August 2026, domestic receipts had recovered from July’s 1.9 million litres daily, but remained below the reported 3.9 million litres daily programme average.

The figures come amid continuing attention to domestic refining capacity and the availability of petroleum products within Nigeria. Aviation turbine kerosene, commonly known as jet fuel, is used by commercial aircraft, making consistent supply important to the aviation industry.

However, the NMDPRA figures on domestic receipts alone do not show how much fuel was available from imports, the volume held in storage, actual airline consumption, or the extent to which supply changes affected ticket prices and flight operations.

The August recovery therefore indicates an improvement in domestic deliveries from the preceding month, but further information on imports, consumption and stock levels would be needed to determine whether the increase translated into improved overall jet fuel availability.

The data also showed that natural gas supply averaged 4.963 billion cubic feet per day during the period, while the liquefied petroleum gas market recorded a shift towards imports in August as domestic deliveries declined.

On natural gas, the NMDPRA figures showed that total supply averaged 4.963 billion cubic feet per day between January and August, comprising average domestic deliveries of 2.030 billion cubic feet daily and average feedgas supply to Nigeria LNG of 2.933 billion cubic feet daily.

The figures mean that NLNG feedgas accounted for approximately 59.1 per cent of the reported combined gas flow, while domestic deliveries accounted for about 40.9 per cent.

Total gas flow peaked at approximately 5.141 billion cubic feet daily in April, when domestic supply stood at 2.012 billion cubic feet, and NLNG feedgas reached 3.129 billion cubic feet daily.

Domestic supply subsequently increased to 2.133 billion cubic feet daily in May and 2.126 billion cubic feet in June before falling to 2.028 billion cubic feet in July. It recovered to a record 2.214 billion cubic feet daily in August, according to the supplied figures.

NLNG feedgas, however, declined from 2.990 billion cubic feet daily in June to 2.695 billion cubic feet in July and 2.716 billion cubic feet in August.

The August figures showed that domestic deliveries increased by about nine per cent from July, while NLNG feedgas supply edged up by less than one per cent. Total gas flow consequently rose from 4.723 billion cubic feet daily in July to 4.930 billion cubic feet in August.

The gas figures provide a broader picture of the supply available to domestic users and the feedgas delivered to the LNG export chain. However, the combined figures should not be interpreted as gas available entirely for local consumption, because NLNG feedgas serves a separate liquefaction and export process.

The LPG market recorded a different trend in August, with imports increasing as domestic deliveries declined. According to the fact sheet, total LPG receipts fell from 5.3 kilotonnes daily in July to approximately 4.3 kilotonnes in August, a decline of about 19 per cent.

Domestic supply from refineries and gas-processing plants dropped from 4.4 kilotonnes daily in July to three kilotonnes in August, representing a reduction of about 32 per cent.

In contrast, imports by oil marketing companies increased from 0.9 kilotonnes daily to 1.3 kilotonnes over the same period, a rise of approximately 44 per cent.

The shift meant that imports accounted for a larger share of August’s LPG receipts as local deliveries weakened. Domestic supply nevertheless remained higher than imports, at three kilotonnes daily compared with 1.3 kilotonnes.

The wider 13-month LPG data showed average domestic supply of 3.9 kilotonnes daily and average imports of 0.8 kilotonnes daily, with total supply averaging 4.7 kilotonnes daily.

In August, the listed sources of LPG included 0.650 kilotonnes daily from the Dangote Petroleum Refinery, 0.860 kilotonnes from NLNG and SEPNU via vessels, 1.475 kilotonnes from other processing plants delivered by trucks, and 1.324 kilotonnes from imports. These sources totalled approximately 4.309 kilotonnes daily.

The figures show that Nigeria continued to rely predominantly on domestic sources for LPG, even as imports increased in August to partly offset lower local deliveries. The data alone, however, do not establish whether the change resulted in shortages or higher retail prices.

Taken together, the NMDPRA statistics reveal differing supply conditions across aviation fuel, natural gas and LPG during the first eight months of 2026. Aviation fuel receipts moved unevenly, domestic gas deliveries reached their highest reported level in August, and LPG imports increased as domestic supply fell.