NMDPRA Advocates for African Fuel Price Benchmark

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), led by Chief Executive Rabiu Umar, has advocated for the creation of an African fuel price benchmark. This initiative aims to develop a regional pricing mechanism that aligns with Africa's growing refining capacity, enhances market transparency, and reduces dependence on foreign pricing indices.

Umar made this statement in Abuja on Thursday, prior to the second West Africa Refined Fuel Conference, which will focus on attracting investment in infrastructure and logistics necessary for establishing a competitive West African petroleum pricing and trading hub. He pointed out that every major energy-producing region globally has its pricing benchmark, and Africa should not be an exception.

Umar cited Europe’s Amsterdam-Rotterdam-Antwerp trading hub as a successful model for regional pricing, which reflects local market conditions. He emphasized that the increasing refining capacity in Africa makes the establishment of a regional benchmark urgent and beneficial for the West African region.