What are the advantages of the deregulation to the consumer? Will it always mean price increase?
Deregulation is not synonymous to increase in prices even though that may be one of its short-term consequences. But prices could go up or down under the deregulation. Government will set the regulatory framework to ensure effective competition by the private sector in the provision of energy infrastructure, services and supply of petroleum products. The consumer will have the choice to buy products from the most cost effective Oil Marketing Company; Government resources previously used for subsidizing petroleum products will be freed to undertake more developmental projects and programmes such as construction of good roads, clinics, hospitals, schools, and provision of good drinking water etc., for the benefit of the general public and especially the rural poor. Deregulation of petroleum products would most certainly make petroleum products available at all times to consumers.
