NMDPRA Advocates for African Fuel Price Benchmark

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has advocated for the establishment of an African fuel price benchmark to reflect the continent's refining capacity, enhance market transparency, and decrease dependence on foreign pricing indices. Chief Executive Rabiu Umar made this statement in Abuja on Thursday, prior to the second West Africa Refined Fuel Conference.

He emphasized that every major energy-producing region globally has its own recognized pricing benchmark, and Africa should not be an exception as investments in refining and logistics increase. Umar pointed out that regional pricing benchmarks are crucial as they mirror local market realities.

He cited Europe’s Amsterdam-Rotterdam-Antwerp trading hub as a successful model for regional pricing and supply. Umar noted that the growth of refining capacity in Africa makes the establishment of a regional benchmark increasingly urgent, advocating for a similar hub in West Africa to improve price discovery and regional trade.