Rep. Ikenga Ugochinyere, head of the House Committee on Petroleum Resources (Downstream), has promised legislative backing to create an open pricing standard for refined fuel in West Africa. He announced this initiative during the West Africa Refined Fuel Market 2026 Conference in Abuja, an event hosted by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Ugochinyere explained that West Africa has functioned as a price follower for too long, despite its significant consumption. Because the region historically imported both fuel and price signals, it frequently paid additional costs. He emphasized that the growth of local refining capacity—highlighted by the Dangote Refinery and ongoing upgrades to the Port Harcourt, Warri, and Kaduna facilities—necessitates a shift in how the region handles market valuation. Under the Petroleum Industry Act, he argued that a producing region should also control its pricing mechanisms to avoid reliance on foreign indices.
To build a robust system, Ugochinyere noted the need for liquidity, reliable data, trust, and physical infrastructure like pipelines and storage depots. The NMDPRA is currently spearheading this effort to transition away from European and Mediterranean price benchmarks, aiming to establish an independent system that reflects local economic realities.
