What people call magic is, in fact, an illusion. When a magician puts a woman in a box and saws the middle of the box, one expects her to be sawn into two except that this does not happen. This paper traces the origins of thePetroleumEqualizationFund (PEF) inNigeriaand 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. ThePetroleumEqualisationFund (PEF) was established by Decree No. 9 of 1975 (as amended by Decree No. It came into being to address incidences of long queues experienced nationwide due to frequent shortages of petroleum products. ThePetroleumEqualisationFund has raised alarm to draw the attention of petroleum marketing companies and truck owners involved in the bridging and equalisation schemes. HowDoesthePetroleumEqualisationFundWork?PetroleumEqualisationFund and Fuel Prices inNigeria. PEF’s impact on fuel prices is most evident in howit maintains uniformity. Discover howthePetroleumEqualisationFundworks, its role in regulating fuel prices and benefits for consumers inNigeria.The PEF was established in 1988 to ensure that the prices of petroleum products are equalized across the country. PetroleumEqualizationFund is for reimbursement of petroleum companies on any losses inNigeria. The Core Values for ThePetroleumEqualizationFund (Management) Board are to promote high ethical standards of a responsibility to public service and organizations. The Independent Petroleum Marketers Association of Nigeria (IPMAN) has asked the Nigerian National Petroleum Company Limited to pay the long-held petroleumequalisationfunds owed to its members.