Accurate and appropriate pricing of petroleum
products is one of the major factors that will attract private investment
into Nigeria down stream petroleum sector. This is as a result of prices of petroleum products will
be set by independent marketers based on demands and supply
of the products like every others
goods and services in the market
place, independent oil
marketers would lead to
further reduction in prices for refined
oil products until an appropriate market
price is attained.
The government of
Nigeria continuation of the subsidizing the down stream will not help to
achieve the appropriate pricing required. There
by deregulation through subsidy removal will lead to
adjustments that will push prices towards its market – determined level. Pricing
that achieved through this policy
will make activities to private domestic and foreign investor,