Downstream Deregulation Policy and Availability of Petroleum Products in Akwa Ibom State Nigeria

Sunday E. Ibanga

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Abstract

The adoption of downstream deregulation policy was to enhance availability of petroleum products and eradicate endless queues at filling stations in Nigeria including Akwa Ibom State. Sadly, owing to poor implementation of this policy, the crisis of petroleum products scarcity still persists in the country. Therefore, the objective of this study is to examine the impact of downstream deregulation policy and the availability of petroleum products in Akwa Ibom State. The study used Pearson Moment Correlation Coefficient as the statistical tool for the analysis. Three hypotheses were tested at 0.05 significant levels. This study is anchored on the theory of demand and supply. The findings revealed that endemic corruption, cross-border smuggling by petroleum marketers and downstream oil deregulation policy on removal of petroleum products subsidy are the major challenges to availability of petroleum products in Akwa Ibom State. The study recommended that the various institutions set-up to checkmate corruption in the petroleum sector of the Nigeria economy should be held accountable for all corruption offences recorded in the sector. The federal government should ensure enforcement of the joint task force who monitor the movement of the petroleum products from the refineries to final destination including retail outlet stations, to curb cross-border smuggling. Nigeria government should implement full deregulation policy to end petroleum products scarcity in the country

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