The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is pushing to establish a native African reference price benchmark for refined petroleum products, a move aimed at ending the continent’s reliance on foreign pricing indices and reflecting local market realities.
Rabiu Umar, Authority chief executive (ACE) NMDPRA stated this in Abuja on Thursday, stating that He said that while Africa produces significant volumes of oil and gas, yet much of the pricing for our commodities is determined outside the continent.
“Whether you’re talking about Europe, Northwest Europe, or America, they have their own benchmarks. Whether you talk about the Mediterranean or you go to the Gulf countries, everywhere you go, there’s a trading index. It is a global index, but there is a specific index for that region.
“Why does it exist? Because the process for pricing starts with price discovery, and it takes a lot of elements into consideration.
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