Understanding is a relation between the knower and an object of understanding. Understanding implies abilities and dispositions with respect to an object of knowledge that are sufficient to support … PetroleumEqualisationFund and FuelPrices in Nigeria. PEF’s impact on fuelprices is most evident in how it maintains uniformity. Petrol prices in Nigeria can be highly variable if transportation costs were left to market forces alone. To them, thePetroleumEqualisation (Management) Board (commonly known as PEF), has either outlived its usefulness or at best, should be made to be an arm of a parastatal, under the Ministry of Petroleum Resources. Theimpactof any slight variation in fuelprice in any location in the country could bring about an unimaginable effect in costs of output. Equalization is a common practice in South Africa, UK, and California-USA, arguably the largest capitalist economy in the world. Discover how thePetroleumEqualisationFund works, its role in regulating fuelprices and benefits for consumers in Nigeria. “With respect to the equalisationfund, we wish to clarify that its management and disbursement fall strictly under the mandate ofthe Nigerian Midstream and Downstream Petroleum Regulatory Authority,” Odeh stated. This paper traces the origins ofthePetroleumEqualizationFund (PEF) in Nigeria and describes the environment in which it has operated. The paper argues that the PEF has failed to live up to its mandate of equalizing the prices of petroleum products across the country.
