Despite the tremendous contributions of petroleum products to the Nigerian economy, having appropriate pricing policy has been a contentious issue and remains one of the most complex socio-economic policy issue. This research estimates the demand elasticities of the three subsidised petroleum products in Nigeria (gasoline, kerosene and diesel) between 1980 and 2008 and determines their implications to the impending deregulation of the downstream petroleum sector of Nigeria. Lagged endogenous dynamic model approach to regression is used, due to the derived nature of energy demand. The findings...