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:
1.0Introduction--------- 1
1.1Background of Study-------- 2
1.1.1Deregulation in the upstream sector----- 3
1.2Nigeria Economic Scenario------- 3
1.3Crude oil price-------- 7
1.4Problem statement-------- 9
1.5Objective of study-------- 10
1.6Scope and limitation of study------ 11
1.7Relevance of the study------- 11
1.8Methodology--------- 12
Chapter Two:
2.0Literature Review-------- 13
2.1Review on the petroleum industry in Nigeria---- 14
2.2Countries that have undergone deregulation in various sectors- 16
2.3Petroleum Pricing in Nigeria---- 26
Chapter Three:
3.0Methodology and Appropriate prices of Petroleum Product
determination in Nigeria ------- 34
3.1Determination of the Appropriate Pricing of Petroleum Product-- 35
3.1.1Revenue Function-------- 36
3.1.2Determination of the Average and Marginal Revenue--- 38
3.2Cost Functions and Curves------- 41
3.3Probable modes of Implementation of deregulation---- 44
Chapter four:
4.0Analysis of Domestic production Cost Vs Importation Cost--- 57
4.1Implication of Deregulation------- 57
4.2Possible Merits of Deregulation------ 58
4.3Demerits of Deregulation------- 58
4.4Reason for Disagreement to Deregulation and Implementation by Nigerian
Citizens (NUPENG AND PENGASSAN)----- 59
Chapter Five:
5.0Conclusion(s)--------- 61
5.1Recommendation-------- 61
REFERENCE-------- 62