The decision emerged as a key outcome of the inaugural West African Refined Fuel Market Conference, jointly organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and S&P Global Commodity Insights, which took place recently in Abuja.
The conference, themed “West Africa Refined Fuel Market: Pathway to a Regional Reference Market,” brought together policymakers, traders, and energy executives to design a roadmap for a more integrated and transparent fuel market.
Discussions focused on creating petroleum and natural gas trading hubs in Nigeria, enhancing pricing and quality standards, and improving transparency through digital market platforms.
According to a communiqué published by the NMDPRA, the meeting resolved to establish a West African Regulators Forum and a Technical Working Group to coordinate implementation of conference resolutions.
The Forum, to be jointly managed by the NMDPRA and the African Refiners and Distributors Association (ARDA), will ensure that agreed timelines are met while tackling barriers such as infrastructure gaps, currency instability, and inconsistent product specifications.
Refinery growth and price stability
Fuel prices in Africa have remained volatile, with frequent changes driven by shifts in global oil prices, import costs, and exchange rate fluctuations.
Countries like Nigeria, Ghana, and Kenya have experienced repeated price adjustments that ripple through transportation, food, and manufacturing sectors.
Analysts say the creation of the West African Regulators Forum could be pivotal in stabilising the market. By aligning national pricing frameworks and promoting regional trade, it will help reduce dependence on international benchmarks that often dictate pump prices across Africa.
Key outcomes from the conference included plans to incentivise refinery expansion, ensure adequate feedstock for domestic refiners, establish transparent regional price assessments, and create a harmonised pricing and product quality framework.
Stakeholders also agreed to develop a performance roadmap, promote innovative funding by African financial institutions, and set up a West African Regulators Forum and Technical Working Group to coordinate implementation.
“We are encouraged by the successes of this inaugural event,” said NMDPRA Chief Executive Farouk Ahmed. “It marks a strong step toward creating a sustainable and transparent regional fuel market.”
The rise of new refineries across the continent, most notably the Dangote Refinery in Nigeria, Senegal’s SAR, and projects in Angola and Uganda, is also expected to reshape supply dynamics. Increased local refining capacity will cut reliance on imported petroleum products, offering governments more control over pricing and reducing exposure to global price shocks.
Stakeholders believe the new framework will ultimately protect consumers by ensuring more predictable fuel prices across West Africa.
