ABSTRACT
Deregulation is the removal or simplification of government rules and regulations that constrain the operation of market force. In course of studying the effect of deregulation, various economic model will be applied to data gotten from the Nigerian National Petroleum Corporation NNPC for efficient and workable economic policy that will bring a sustainable development to both the sector and the country as a whole. This work analyzes the various implications removal of subsidy will have on the economy and also determines whether deregulation will be a solution to the problems and challenges existing from the oil and gas sector(downstream sector). .
We shall use data of crude oil prices and supply from various years reported by Nigerian National Petroleum Corporation (NNPC) and Petroleum Pricing and Monitoring Committee(PPMC) bulletin, the prices of petroleum and the appropriate pricing would be illustrated clearly showing the trend that will best suit our economy .
TABLE OF CONTENT
Title Page - - - - - - - - - - i
Certification - - - - - - - - - - ii
Dedication - - - - - - - - - - iii
Acknowledgement - - - - - - - - - iv
Abstract - - - - - - - - - - vi
Table of Content - - - - - - - - - vii
Chapter One:
1.0 Introduction - - - - - - - - - 1
1.1 Background of Study - - - - - - - - 2
1.1.1 Deregulation in the upstream sector - - - - - 3
1.2 Nigeria Economic Scenario - - - - - - - 3
1.3 Crude oil price - - - - - - - - 7
1.4 Problem statement - - - - - - - - 9
1.5 Objective of study - - - - - - - - 10
1.6 Scope and limitation of study - - - - - - 11
1.7 Relevance of the study - - - - - - - 11
1.8 Methodology - - - - - - - - - 12
Chapter Two:
2.0 Literature Review - - - - - - - - 13
2.1 Review on the petroleum industry in Nigeria - - - - 14
2.2 Countries that have undergone deregulation in various sectors - 16
2.3 Petroleum Pricing in Nigeria - - - - 26
Chapter Three:
3.0 Methodology and Appropriate prices of Petroleum Product
determination in Nigeria - - - - - - - 34
3.1 Determination of the Appropriate Pricing of Petroleum Product - - 35
3.1.1 Revenue Function - - - - - - - - 36
3.1.2 Determination of the Average and Marginal Revenue - - - 38
3.2 Cost Functions and Curves - - - - - - - 41
3.3 Probable modes of Implementation of deregulation - - - - 44
Chapter four:
4.0 Analysis of Domestic production Cost Vs Importation Cost - - - 57
4.1 Implication of Deregulation - - - - - - - 57
4.2 Possible Merits of Deregulation - - - - - - 58
4.3 Demerits of Deregulation - - - - - - - 58
4.4 Reason for Disagreement to Deregulation and Implementation by Nigerian
Citizens (NUPENG AND PENGASSAN) - - - - - 59
Chapter Five:
5.0 Conclusion(s) - - - - - - - - - 61
5.1 Recommendation - - - - - - - - 61
REFERENCE - - - - - - - - 62