The Federal Government has called for the development of a West African petroleum pricing benchmark, arguing that crises in Europe and the Mediterranean should not automatically determine the price of refined petroleum products in African markets.

The Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Rabiu Umar, made the call on Tuesday at the second West Africa Refined Fuel Market Conference in Abuja.

Umar said it was unreasonable for disruptions in regions thousands of kilometres away to significantly influence petroleum prices in West Africa when the events had little connection with the fundamentals of African markets.

He said prices should instead reflect factors such as local supply and demand, regional geopolitical developments and market conditions.

The NMDPRA boss said the need for a regional benchmark had become more urgent as refining capacity across Africa increased and Nigeria emerged as a major supplier of refined petroleum products to other West African countries.

He argued that a functioning regional market would help shield consumers from external price shocks while ensuring that genuine supply disruptions within Africa were properly reflected in prices.

Umar said establishing such a market would require significant investment in refineries, storage facilities, ports, roads, railways and pipelines, as well as harmonised petroleum standards and reliable market data.

He also urged West African countries to avoid unnecessarily duplicating infrastructure, saying countries should develop facilities based on their comparative advantages and strengthen regional cooperation.

The conference, jointly hosted by the NMDPRA, S&P Global Commodity Insights and the West Africa Regulator Forum, focused on financing infrastructure and distribution networks needed to establish transparent regional price benchmarks.

Umar said the objective was to move beyond discussions and create a functioning West African petroleum trading hub where products could move efficiently, regional supply would become more secure and prices would increasingly reflect the realities of the region.