bloomshorts NMDPRA’s Call for Regional Price Index
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), under the leadership of Chief Executive Farouk Ahmed, has emphasized the need for a regional price index for crude oil and petroleum products in Africa. This initiative aims to tackle the lack of transparency and inefficiency in the West African fuel market.
Current Challenges and Proposed Solutions
Ahmed highlighted the region’s heavy reliance on fuel imports, with 69% of gasoline supply sourced from overseas, despite increasing refining capacities in countries like Nigeria, Ghana, and Côte d’Ivoire. The proposed regional price index is seen as a solution to reflect the unique economic and logistical realities of Africa, moving away from global benchmarks that do not accurately represent the continent’s situation.
Future Prospects
With Nigeria’s refining sector undergoing significant transformation, including projects like the Dangote Refinery, the NMDPRA is optimistic about West Africa’s role in the projected 1.2 million barrels per day increase in refining capacity by 2030. The authority’s collaboration with S&P Global Commodity Insights to develop tailored price indices is a step towards achieving a transparent and efficient regional energy market.
