The initiative, launched at the West African Refined Fuel Conference in Nigeria's capital, Abuja, aims to create localised indices for products such as petrol, diesel, aviation fuel and liquefied petroleum gas.

West Africa is a significant oil and gas producer as well as a growing refining hub. But it is currently dependent upon posted prices from global reference markets, said Farouk Ahmed, head of Nigeria's Midstream and Downstream Petroleum Regulatory Authority.

"While these benchmarks are globally accepted, often they do not reflect the unique supply chain peculiarities, market dynamics and economic realities of the African continent," Ahmed said.

The partnership will improve price transparency, support investment decisions and enhance energy security across the region, he added.

Organisation of the Petroleum Exporting Countries member Nigeria, Africa's largest crude producer, is implementing reforms to liberalise its downstream sector as it positions itself as a regional trading hub.

--Reuters--