Deregulation and Inflation: Preventing a Petroleum Industry Act's Paradox

Abstract

This paper seeks to expatiate on the impact of Petroleum Industry Act 2020, given its provision authorizing the Federal Government to withdraw subsidy payment at the downstream sector and deregulate same. Without necessarily antagonizing this initiative, given that it would rid government’s expenditure from the massive the cost that goes with the maintaining subsidy payment, and enable the government focus on other sectors of the economy that could thrive better with increased funding, I attempt to show that the initiative without more could engineer a grim impact on the economy from a pricing standpoint, and ultimately proffering solutions across various timelines to manage the deregulation plans.