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Dangote refinery spurs West Africa fuel trading hub ambitions
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MyJoyOnline
West African energy regulators are stepping up plans for a regional fuel pricing benchmark and trading hub, betting that a wave of new refining capacity led by Nigeria's Dangote refinery can give Africa a greater role in fuel price discovery and trade, Nigeria's regulator said on Tuesday.
The regulator said West Africa had made progress towards establishing a regional refined-products benchmark market, citing closer collaboration with S&P Global Commodity Insights.
Umar said efforts to align regional fuel pricing and regulation had gained ground over the past year, but warned that inadequate infrastructure, weak logistics and limited market transparency still stood in the way of a credible hub.
The regulator said a regional trading hub would require investments in pipelines, storage, marine logistics and digital trading systems to improve fuel flows and market liquidity.
Regulators urged West African countries to harmonise fuel standards, licensing and trade rules, warning that regulatory fragmentation was inflating the cost of regional energy trade.