The Nigerian Midstream and Downstream Petroleum Regulatory Authority has called for the establishment of an African fuel price benchmark, saying the continent must develop its own regional pricing mechanism to reflect its growing refining capacity, improve market transparency and reduce dependence on foreign pricing indices.
The authority said every major energy-producing region in the world already operates a recognised pricing benchmark, stressing that Africa should not remain an exception as investment in refining, logistics and cross-border petroleum trade continues to grow.
The Chief Executive of NMDPRA, Rabiu Umar, made the call in Abuja on Thursday ahead of the second West Africa Refined Fuel Conference. Umar said the conference would focus on attracting investment into the infrastructure and logistics needed to establish a transparent and competitive West African petroleum pricing and trading hub.
He explained that regional pricing benchmarks are critical because they reflect local market realities rather than relying solely on international indices.
“Every region in the world today has its own pricing benchmark. Whether you’re talking about Europe, Northwest Europe, or America, they have their own benchmarks. Whether you talk about the Mediterranean or you go to the Gulf countries, everywhere you go, there’s a trading index. It is a global index, but there is a specific index for that region.
