Govt Partners with S&P Global to Set Regional Fuel Pricing Benchmark for Enhanced Transparency.
Today, the Nigerian government officially announced a partnership with S&P Global Commodity Insights to launch a regional petroleum price index tailored for West Africa. The new benchmark will cover refined fuel types including petrol, diesel, aviation fuel, and LPG—a move aimed at ensuring pricing reflects local market realities and supply chain dynamics.
The initiative was unveiled at the West African Refined Fuel Conference in Abuja, where Farouk Ahmed—the head of Nigeria’s Midstream and Downstream Petroleum Regulatory Authority—emphasized that global benchmarks have long failed to capture the complexity of regional markets. By developing a localized index, Nigeria hopes to attract investment, improve pricing transparency, and strengthen energy security across the region.
Analysts believe this move could position Nigeria as a major regional petroleum trade hub, especially following the Dangote refinery's recent operations in Lagos, boosting Nigeria’s refined fuel output to nearly 31% market share in West Africa ([turn0news41] ). If widely adopted, the index could set pricing norms used by governments, businesses, and international traders across the region.
While industry stakeholders have welcomed the transparency push, some economists caution that price stabilization will depend on broader reforms—such as improving infrastructure, tackling subsidy distortions, and enhancing regulatory capacity. For now, Nigeria is betting that this strategic initiative could signal a transformative step in its energy sector’s evolution.
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