Africa’s continued reliance on European and American oil pricing benchmarks is leaving the continent unnecessarily exposed to global shocks, and the time has come to build a regional alternative, the Managing Director of the Tema Oil Refinery (TOR) has argued.
Edmond Kombat made the case while speaking to Fellows of the Africa Extractives Media Fellowship (AEMF), pointing out that African crude has long been priced against international standards such as Brent Crude and West Texas Intermediate (WTI), both shaped by market dynamics far removed from African realities.
His remarks carry added weight at a moment when oil prices have surged past $100 per barrel following the disruption of shipping through the Strait of Hormuz, a crisis rooted in Middle East conflict that has already halted crude deliveries to TOR and sent freight costs soaring.
“As a West African subregion, we have to have our own pricing regime and pricing benchmark,” Kombat said. “We currently price crude and petroleum products on Brents, which is Europe-led, and then WTI. WTI is America-led.”
He questioned why geopolitical events entirely unrelated to Africa, from tensions in the Middle East to decisions made in Washington or London, should determine how African crude is valued. Ghana, Nigeria, Angola, Côte d’Ivoire, Gabon, and Equatorial Guinea all produce crude oil, yet none of them controls how that crude is priced on global markets.
Kombat argued that a sub-Saharan African pricing benchmark anchored in regional supply, demand, and risk factors could moderate the kind of violent price swings the continent is currently absorbing. Rather than crude jumping from $65 to $100 because of a distant conflict, he said, a regional reference point could allow prices to move more gradually in line with African market conditions.
Beyond crude, the issue extends to refined petroleum products, which across Africa are priced using international reporting agencies such as S&P Global Platts and Argus Media, both based outside the continent. These benchmarks shape everything from pump prices to industrial fuel costs.
Building such a framework would not be straightforward. It would require coordination among multiple producing nations, the development of transparent trading platforms, credible data infrastructure, and strong regulatory systems. However, the potential gains are substantial. A continental benchmark could strengthen Africa’s bargaining position in global energy markets, reduce exposure to external shocks, and lay a foundation for greater intra-African crude and refined products trade, consistent with the goals of continental economic integration.
