West African Regulators Unite to Harmonise Regional Fuel Pricing Framework

Energy regulators across West Africa have commenced discussions to establish a unified framework for fuel price harmonisation in the region, a move aimed at stabilising markets, reducing smuggling, and fostering economic integration among member states. The initiative, led by the Economic Community of West African States (ECOWAS) Commission, seeks to address the disparities in petroleum product pricing that have long contributed to cross-border arbitrage and fuel diversion.

The harmonisation effort was unveiled at a high-level meeting of energy ministers and regulatory agencies held in Abuja, Nigeria, where delegates from over 15 West African countries convened to deliberate on regional pricing policies and energy security. The forum, jointly organised by the ECOWAS Regional Electricity Regulatory Authority (ERERA) and the West African Petroleum Regulators Forum (WAPREF), emphasised the need for coordinated energy reforms to enhance affordability and sustainability.

According to ECOWAS Commissioner for Energy and Mines, Sediko Douka, the price differences across West African nations have created opportunities for illegal fuel trading and revenue losses for governments. He stated that the harmonisation of fuel prices would help eliminate distortions, ensure fair competition, and support regional trade. “The disparities in fuel pricing have continued to fuel smuggling and market instability. Our goal is to create a transparent and predictable pricing mechanism that benefits both consumers and governments,” Douka said.

Nigeria, Ghana, Benin, and Niger were identified as the primary countries affected by cross-border fuel leakages due to price differentials. Nigeria, for instance, has historically sold petrol at lower prices than its neighbours, encouraging the diversion of subsidised products across borders. The new initiative aims to mitigate such practices by establishing a regional benchmark for fuel pricing, taking into account production costs, transportation, and exchange rate fluctuations.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) played a key role in the Abuja meeting, with its Chief Executive, Farouk Ahmed, reaffirming Nigeria’s support for regional integration efforts. Ahmed noted that while each country has unique market dynamics, aligning pricing frameworks would bring long-term stability to the energy sector. “The harmonisation of prices is not about imposing uniformity but about coordination and cooperation. It will enhance transparency, attract investment, and reduce illicit trade,” he explained.

Ahmed further stated that the NMDPRA is working closely with regional counterparts to develop data-sharing platforms that would enable real-time tracking of petroleum products and facilitate the enforcement of fair pricing across borders. He added that Nigeria’s ongoing deregulation of the downstream sector provides a solid foundation for aligning with regional pricing structures.

Ghana’s National Petroleum Authority (NPA) and the Société Nationale d’Opérations Pétrolières (SNOP) of Benin also expressed strong support for the harmonisation initiative. Ghana’s Deputy Energy Minister, Andrew Mercer, said the regional alignment would create a more resilient market and foster competitiveness among fuel marketers. “By aligning our pricing models, we will reduce the temptation for smuggling and promote fair value for consumers in all ECOWAS member states,” Mercer said.

Experts at the meeting agreed that achieving fuel price harmonisation would require a phased approach, beginning with data harmonisation, followed by gradual alignment of fiscal and regulatory policies. They also highlighted the need for improved regional infrastructure, including pipelines, depots, and refineries, to support the initiative.

The ECOWAS Secretariat disclosed that a technical working group has been established to draft a regional framework that will guide implementation. The group will work with national energy ministries, regulators, and private stakeholders to design a model that accommodates market realities while ensuring social protection for vulnerable populations.

Economists believe the move could significantly enhance energy security and macroeconomic stability in West Africa, where fuel imports account for a large share of government expenditure. Dr. Henri Konaté, an energy economist from Côte d’Ivoire, noted that harmonised pricing could also help governments plan better and reduce fiscal strain caused by volatile global oil prices. “With coordinated fuel pricing, ECOWAS countries can avoid sudden shocks and promote a more predictable energy market,” he said.

However, analysts cautioned that political commitment and transparency would be crucial for success. They warned that failure to implement complementary reforms—such as subsidy management and exchange rate stabilisation—could undermine the initiative.

To ensure fairness, the ECOWAS Commission is also engaging oil marketers, importers, and transport unions across the region to gather input and foster stakeholder buy-in. The Commission said it plans to release a draft regional fuel pricing policy by mid-2026, which will be reviewed by member states before adoption.

The harmonisation initiative aligns with the ECOWAS Vision 2050, which prioritises regional economic integration and shared prosperity. It also supports the African Continental Free Trade Area (AfCFTA) goals of removing non-tariff barriers and facilitating trade across borders.

With Nigeria’s Dangote Refinery expected to supply a significant portion of refined products to the region, stakeholders believe the timing of the fuel price harmonisation effort is ideal. The refinery’s large-scale production capacity could serve as a stabilising factor in regional supply and pricing dynamics.

As discussions continue, energy regulators remain optimistic that harmonising fuel prices will strengthen West Africa’s energy market, reduce illicit trade, and enhance competitiveness across the subregion.