Groundbreaking Fuel Price Benchmark to Enhance Transparency and Trade in West Africa.
Nigeria has officially partnered with S&P Global Commodity Insights to establish the first West African petroleum price index, designed to benchmark domestic fuel pricing across regional markets. The initiative was unveiled at a fuel sector conference in Abuja.
The index will cover refined products including petrol, diesel, aviation fuel, and LPG, aiming to reflect regional supply dynamics more accurately than global benchmarks, which often misalign with African market realities . Nigeria, with the operation of the Dangote refinery generating over 31% of West Africa’s refined fuel, is positioning itself as a fuel trade hub.
Officials contend that the index will boost transparency, foster investment, and enhance pricing efficiency—potentially informing government policy and regional trade decisions. It may also support cross-border agreements and private sector negotiation leverage.
Yet experts warn that for long-term impact, Nigeria must pair the index with broader reforms—such as refining capacity scaling, downstream liberalisation, and infrastructure upgrades—to fully unlock regional energy leadership.
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