NMDPRA calls for establishment of African fuel pricing benchmark

By Firdaus Jibril

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has called for the establishment of a regional fuel pricing benchmark for Africa, saying the continent should no longer depend solely on foreign pricing indices as its refining capacity continues to grow.

The Authority made the call during a press conference held with the West Africa Regulators Forum (WARF) ahead of the West Africa Refined Fuel Market Conference scheduled for August 11 and 12.

Speaking at the briefing, the Authority Chief Executive of NMDPRA and Chairman of WARF, Rabiu Umar, said Africa’s growing refining capacity makes it necessary to develop a pricing reference that reflects regional market realities.

He said a regional benchmark would improve market transparency, support investment and enable African countries to benefit more from regional refining and fuel trade.

“The more we’re able to refine our products, the more relevant it is to have our own reference pricing and create that advantage, particularly within the West African region,” Umar said.

He noted that establishing an African petroleum pricing benchmark would help maximise the benefits of increased refining capacity across the continent and reduce dependence on foreign price references.

According to him, the West Africa Refined Fuel Market Conference, organised by NMDPRA in collaboration with S&P Global Commodity Insights and the West Africa Regulators Forum, will provide a platform for regulators, industry players and investors to discuss ways of strengthening the regional petroleum market.

He said discussions at the conference would focus on identifying infrastructure gaps, attracting investment, promoting regional collaboration and advancing efforts to develop a credible African petroleum price benchmark.

The conference comes as several African countries expand domestic refining capacity, with governments seeking to strengthen regional energy security and reduce dependence on imported refined petroleum products.