West Africa Pushes Petroleum Benchmark as Dangote’s 650,000-bpd Refinery Reshapes Regional Fuel Trade
Updated
Updated · Business Insider Africa · Aug 11
West Africa Pushes Petroleum Benchmark as Dangote’s 650,000-bpd Refinery Reshapes Regional Fuel Trade
3 articles · Updated · Business Insider Africa · Aug 11
Summary
West Africa is stepping up plans for a regional petroleum pricing benchmark, with Nigeria arguing fuel refined and consumed locally should be priced within the region rather than by overseas hubs.
Dangote’s 650,000-bpd refinery has made that goal more plausible by lifting regional supply and cutting clean product imports to about 765,000 bpd in May from 997,000 bpd in April.
Nigeria’s advisers and downstream regulator said a credible benchmark will depend on real transactions, reliable market data, commercial liquidity and trust in the institutions publishing prices.
Infrastructure remains the main obstacle: regulators cited the need for more pipelines, storage, jetties, ports, rail links, roads and marine logistics to connect West African fuel markets.
S&P Global Platts is already building West African fuel assessments, but officials say only a deeper, more transparent trading market will let the benchmark emerge organically.