AFRICA NEEDS INDEPENDENT FUEL PRICING BENCHMARK, SAYS NMDPRA

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has called for the establishment of an independent African fuel pricing benchmark, saying the continent should reduce its reliance on external pricing mechanisms.

According to the authority, a regional pricing benchmark would better reflect Africa's market realities, improve price transparency, and support fairer valuation of petroleum products across the continent.

The NMDPRA noted that dependence on international pricing references may not always capture Africa's unique supply, demand, and logistics dynamics, making a homegrown benchmark increasingly important.

Energy experts said an African pricing benchmark could strengthen regional energy trade, improve market efficiency, and provide investors with greater confidence in the continent's petroleum markets.

They added that achieving such a benchmark would require stronger collaboration among African oil-producing nations, harmonised regulations, reliable market data, and improved trading infrastructure.

The authority reaffirmed its support for initiatives that promote energy security, deepen regional cooperation, and strengthen Africa's role in the global petroleum industry through more transparent and locally relevant pricing systems.