Pricing Policy and the Development of the Petroleum Product Market

Odior, E.S.O. ; Okoh, R.N. (2002)

Proceeding of a National Conference on Nigeria’s Petroleum Resources and the Niger Delta Environment, Department of Economics, Delta State University, Abraka, Delta State

Presentation

In this work, we examine the issue of pricing policy in the petroleum product sector in Nigeria. The experience over the years has been that of regulation by Government. The paper examines the situation critically, and concludes that the solution to the fundamental inefficiency in the petroleum product sector, which manifests in the forms of inappropriate pricing, scarcity of refined petroleum products, smuggling, product adulteration and a situation in which the existing refineries are not maintained on a regular basis, can only be rectified by a well-designed and implemented programme of deregulation.