NMDPRA urges Africa to create its own fuel price benchmark
The Nigerian Midstream and Downstream Petroleum Regulatory Authority has emphasized the need for Africa to develop its own regional fuel pricing benchmark. According to Rabiu Umar, the continent’s growing refining capacity and increasing cross-border trade make a local pricing mechanism essential. He highlighted that every major energy-producing region has its own benchmark, and Africa should not be an exception. The move is expected to improve market transparency and reduce reliance on foreign pricing indices.
TLDR
- Rabiu Umar, Chief Executive of NMDPRA, called for an African fuel price benchmark to reflect local market realities.
- He noted that regions like Europe have their own trading hubs, such as the Amsterdam-Rotterdam-Antwerp (ARA) hub.
- Umar stressed that infrastructure, including logistics and transportation, is crucial for an integrated regional petroleum market.
- He stated that Nigeria produces cleaner petroleum products than many countries in the region, with exports not exceeding 50 PPM.
- The establishment of an African benchmark is seen as a way to strengthen regional trade, reduce logistics costs, and support the African Continental Free Trade Area.
