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MEMAN advocates market-driven fuel pricing, regional benchmarks to boost supply security – EnviroNews
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The Major Energies Marketers Association of Nigeria (MEMAN) has called for transparent, competitive and efficient petroleum products pricing in Nigeria, urging improved supply coordination, stronger distribution infrastructure and credible regional pricing benchmarks to address volatility in the downstream sector.
The association also stressed the need to establish reliable West African reference prices that reflect prevailing market conditions, arguing that transparent pricing arrangements and credible market data would strengthen supply security, promote fair competition and improve consumer confidence.
MEMAN made the recommendations at its third-quarter press engagement, organised in partnership with S&P Global Energy through the association’s Industry Competency Centre on October 15, 2026.
The virtual webinar, which focused on building a reference market for petroleum products, examined developments in global and West African refined petroleum markets and explored ways to strengthen Nigeria’s domestic petroleum distribution system.
Speaking at the engagement, MEMAN’s Executive Secretary and Chief Executive Officer, Clement Isong, outlined measures to improve the efficiency and resilience of the downstream market, including better coordination between domestic refinery production and imports, predictable pricing arrangements and clearer bulk supply agreements.
According to the association, locally refined petroleum products should be prioritised, while imports should be used to bridge supply gaps and manage disruptions in the domestic market.
On pricing, MEMAN argued that arbitrary government-imposed price caps would not address the structural challenges confronting the downstream petroleum industry.
Instead, it advocated market-driven pricing mechanisms that reflect prevailing market conditions, alongside measures to eliminate supply bottlenecks and reduce operating costs.
The association maintained that a well-structured market would encourage competition, improve supply security and deliver better outcomes for consumers without depending on government-imposed price controls or broad-based fuel subsidies.
MEMAN Seeks Credible West African Pricing Benchmarks
The webinar highlighted the importance of developing credible regional reference prices to improve transparency and provide market participants with reliable benchmarks for petroleum product transactions.
Presentations by S&P Global Energy officials, including Gary Clark, Associate Editorial Director, EMEA Clean Refined Products, and Matthew Tracey-Cook, Lead Specialist, Africa Refined Products Pricing, examined how geopolitical tensions, refining disruptions and changing global supply dynamics influence petroleum product prices.
The discussions identified middle distillates, particularly diesel and aviation fuel, as products facing significant market pressure amid global uncertainties.
The speakers also highlighted the FOB West Africa (FOBWAF) and STS Lome assessments as important reference points for domestically supplied and imported refined petroleum products, respectively.
They emphasised that greater transparency, reliable market information and wider industry adoption would be essential to establishing a credible regional reference market that reflects local trading conditions.
A reliable pricing framework, the discussions indicated, would help market participants make better-informed decisions and improve transparency in petroleum product transactions across West Africa.
Supply Coordination, Infrastructure Critical to Market Stability
On Nigeria’s domestic distribution system, MEMAN identified improved inventory visibility, expanded storage capacity, better transportation coordination and effective contingency planning as critical to reducing operational inefficiencies and strengthening supply resilience.
The association also called for clearer terms governing bulk supply arrangements, particularly regarding product availability, pricing, delivery schedules and contractual obligations.
It further stressed the importance of non-discriminatory market access, transparent data and efficient regulatory processes to ensure fair competition among downstream operators.
MEMAN said better coordination between domestic refinery output and imported supplies would help reduce disruptions and ensure that imports complement local production rather than undermine efficient market operations.
The association also commended the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for progress in promoting product quality, digitising licensing processes, publishing useful market data and advancing measures to encourage fair competition.
Isong emphasised that maintaining product quality standards and ensuring accurate measurement and delivery of the quantities customers pay for were essential to building public trust in the downstream petroleum market.
He also highlighted the need to improve customer service across the industry.
Technology, CNG Identified as Efficiency Drivers
The engagement also examined the role of technology and alternative energy sources in improving operational efficiency and reducing costs across the petroleum distribution chain.
Participants highlighted opportunities in compressed natural gas (CNG), automation across depots, trucks and filling stations, and improvements in transportation infrastructure.
According to the discussions, greater automation could reduce product losses, improve measurement accuracy and enhance transparency throughout the distribution network.
Improved transportation and storage infrastructure would also help operators manage supply disruptions more effectively and reduce avoidable distribution costs.
Call for Sustainable Downstream Reforms
MEMAN said developing a transparent and competitive petroleum market would require credible pricing benchmarks, coordinated supply arrangements, efficient distribution infrastructure and fair regulation.
The association maintained that strengthening Nigeria’s domestic distribution framework alongside the development of a West African reference market could improve supply resilience, support industry participants and enhance consumer confidence.
It added that a more efficient downstream petroleum industry, where prices reflect market realities and operational improvements reduce unnecessary costs, would provide a more sustainable response to the challenges facing petroleum products distribution in Nigeria.
