Deregulation as earlier stated is government decentralization of the oil sector. Though, there are some sectors that have been deregulated long ago, like the telecommunication sector-radio and television, the education sector government and private, the transport sector and so on. Now, it is on the oil sector.
For deregulation to take place successfully there is the need for certain necessary things to be put in place. Government must first and foremost, liberalized the oil sector to allow for free entry of private businessmen or investors by removing all necessary barriers, subventions being given by Government to the oil sector must stop, the facilities already on ground should be effectively and efficiently maintained by government. Those willing to set up a refinery in the country, firms or investors willing to undertake such ventures should be allowed to freely explore process and sell refined product and crude on their own, but must pay taxes to government in return. In addition to this, there should exist a stable government policy to secure new firm coming into the sector at least for sometime or period. When those things are met, then, the necessary conditions for deregulation would be met.
For deregulation to take place successfully there is the need for certain necessary things to be put in place. Government must first and foremost, liberalized the oil sector to allow for free entry of private businessmen or investors by removing all necessary barriers, subventions being given by Government to the oil sector must stop, the facilities already on ground should be effectively and efficiently maintained by government. Those willing to set up a refinery in the country, firms or investors willing to undertake such ventures should be allowed to freely explore process and sell refined product and crude on their own, but must pay taxes to government in return. In addition to this, there should exist a stable government policy to secure new firm coming into the sector at least for sometime or period. When those things are met, then, the necessary conditions for deregulation would be met.
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