FG Backs West Africa Petrol Pricing Benchmark

The Federal Government has backed a regional petrol pricing benchmark for West Africa, arguing that local supply, demand and trading conditions should carry more weight in how refined petroleum products are priced across the region.

The push was discussed at the West Africa Refined Fuel Market Conference in Abuja, where regulators, refiners, traders and financiers reviewed plans for a clearer regional pricing system.

Punch reported that the Nigerian Midstream and Downstream Petroleum Regulatory Authority said crises in Western Europe and the Mediterranean should not automatically determine fuel prices in Nigeria and neighbouring African markets. The authority’s chief executive, Rabiu Umar, said West Africa needed a benchmark based on its own logistics, refining, storage, inventory and trading conditions.

Vanguard reported that Minister of State for Petroleum Resources (Oil) Heineken Lokpobiri backed the plan, saying Nigeria’s downstream deregulation was meant to attract investment and allow market forces to play a stronger role. He said Nigeria could not meet the regional goal alone and called for closer cooperation among West African countries.

Officials at the conference also pointed to refinery capacity, port and pipeline infrastructure, market data, cross-border rules and access to finance as requirements for credible regional price discovery.

Sources: Punch, Vanguard