NMDPRA Advocates for Local Fuel Pricing in West Africa

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) called for West African countries to develop independent fuel pricing benchmarks that reflect local market realities. Speaking at the second West Africa Refined Fuel Market Conference in Abuja, Chief Executive Rabiu Umar stated that reliance on foreign pricing exposes consumers to external shocks unrelated to regional conditions.

He emphasized the necessity for a pricing mechanism that considers local supply, demand, and refining capacity, especially as Africa's refining capacity grows. Minister of State for Petroleum Resources, Heineken Lokpobiri, supported this view, advocating for increased investment in the oil and gas sector, particularly in the midstream and downstream subsectors.

He noted that the current refining capacity, including the Dangote Refinery's 650,000 barrels per day, is insufficient to meet market demand, highlighting the need for further investment to expand refining capabilities across Nigeria.