Deregulation vs regulation

Energy plays a pivotal role in any nation’s economic development and there are many different sources of it, including natural gas, solar electricity, nuclear power, biomass and biofuels, wind energy, water and geo-thermal. These energy sources are crucial for accelerating the nation’s social and economic growth. As they bolster domestic transportation, businesses, and households. Oil products have grown to be a significant part of the whole energy encyclopedia and have an entrance to the lowest end of the market. In foreign countries, the downstream oil marketplace is open and provides free access to every organization or independent players this lead to deregulation of oil market. ‘Deregulation’ is the elimination of the control of the government from a sector or a particular industry and to allow them to do a free trade in an efficient marketplace. Deregulating the oil market would mean that there would be no support from the government in the form of Inland Freight Equalization Margin (IFEM). The cost of inland movement borne by a refinery for the transport of crude oil from the source to the refinery is known as the Inland Freight Equalization Margin (IEFM). As a result of deregulation, there will be competition in the delivery of the services and this will result make capable the consumers making a wide range of choices in the quest for their satisfaction. For the understanding of the deregulation, one must first have to understand the regulation, as we know that there is no smoke without fire, so that is why there is no deregulation without the regulation. Regulation means any legal tool or legislation or any type of executive policy or an element of the constitution or the political socio-economic control by the government.