NMDPRA leads Africa’s first refined fuel price benchmark

Barbara Bako, Abuja.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has stepped forward as the institutional engine behind Africa’s push to create its first regional benchmark for refined petroleum products.

Speaking at the opening of the West African Refined Fuel Market Conference on Tuesday in Abuja, the Authority’s Chief Executive, Engr. Farouk Ahmed, said NMDPRA is leveraging Nigeria’s strategic advantages to lay the groundwork for a continental pricing reference that reflects African realities — not global distortions.

“While these benchmarks are globally accepted, often they do not reflect the unique supply chain peculiarities, market dynamics, and economic realities of the African continent,” Ahmed noted.

The conference Themed “Creating an African Reference Market for Oil and Gas Products Using Nigeria as Trade Hub,” hosted by NMDPRA in partnership with S&P Global Commodity Insights, marks the beginning of what the Authority describes as a transformational journey toward energy pricing independence for the region.

Farouk said that NMDPRA is spearheading collaboration among stakeholders across West Africa to design transparent indices for key products including Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), Aviation Turbine Kerosene (ATK), and Liquefied Petroleum Gas (LPG).

He cited current refining figures of 1.335 million barrels per day across countries like Nigeria, Ghana, Niger, and Senegal, as well as the fact that over 70% of the 2 million metric tonnes of gasoline traded monthly in West Africa is still imported.

“NMDPRA is committed to facilitating a market system that supports transparency, investor confidence, and equitable value for producers, refiners, and consumers,” Ahmed stated.

The Authority says it will provide the regulatory stability and data infrastructure necessary to launch the benchmark which will guide product pricing, hedging, long-term contracts, and infrastructure financing across the region.

Ahmed added that this initiative is part of NMDPRA’s broader mandate under the Petroleum Industry Act (PIA) to enable a more competitive, efficient, and investor-friendly downstream sector in Nigeria and the wider subregion.

“We are not just regulators — we are enablers of market development. And this move towards an African benchmark is a legacy-defining opportunity,” he concluded.

The conference is expected to produce a roadmap for launching pilot price references and attracting private sector investment in energy logistics and digital trading infrastructure.