The Federal Government has called for a West African fuel price benchmark that reflects the region’s own market realities, arguing that petroleum prices in Africa should not automatically rise whenever disruptions occur in Western Europe or the Mediterranean. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said the region needs a more independent and transparent pricing system as its refining capacity expands and Nigeria emerges as a major supplier of refined petroleum products.
NMDPRA Chief Executive, Rabiu Umar, made the call at the second West Africa Refined Fuel Market Conference in Abuja, where regulators, refiners, traders and investors discussed efforts to establish a regional pricing and trading hub. Umar argued that African consumers should not bear the pricing effects of crises thousands of kilometres away when those disruptions have little connection to West African market conditions. He said prices should instead reflect factors such as local supply, demand and regional geopolitical developments.
The push comes as global energy markets continue to experience volatility, including renewed concerns around the Strait of Hormuz. However, Umar stressed that West Africa must build a market capable of responding to its own realities. He said achieving this would require major investment in refineries, storage facilities, transportation networks, ports, pipelines, reliable market data and stronger cross-border cooperation. A price benchmark, he noted, would mean little without the physical infrastructure and commercial activity needed to support a functioning regional market.
Umar also called for greater regional cooperation instead of countries repeatedly building similar infrastructure. He pointed to differences in petroleum product specifications across West African countries as another barrier to seamless cross-border trade, warning that inconsistent standards make it harder to move refined products efficiently from one market to another. He said regional integration could help countries focus investment on their strongest advantages while reducing costly duplication and directing capital towards projects with wider economic benefits.
For West Africa, the ambition goes beyond simply creating another reference price. The NMDPRA chief said the region needs reliable market information, compatible regulations, stronger infrastructure and participation from refiners, traders, banks, insurers, terminal operators and other industry players. The ultimate goal is to build a petroleum market where prices increasingly reflect West African supply and demand rather than events elsewhere, while improving supply security, regional trade, investment confidence and affordability for consumers.
source: punch
