Assessment of the Impact of Fuel Subsidy Removal on Market Prices in Kwara State, Nigeria
DOI:
https://doi.org/10.56532/mjbem.v4i1.94Keywords:
Fuel Subsidy Removal, Market Prices, Theory of Economic Shock, Kwara StateAbstract
This study assesses the impact of fuel subsidy removal on market prices in Kwara State, Nigeria, from May 29, 2023, to the present. The objectives include analysing price variations in essential commodities and assessing their economic implications on households. Using a mixed-methods approach, primary data were collected through surveys, interviews, and market observations, while secondary data were obtained from official reports. The analysis employed Analysis of Variance (ANOVA) to determine statistically significant differences in price changes across sectors. Results indicate substantial price increases, particularly in fuel-dependent industries such as transportation and food, disproportionately affecting low-income households. ANOVA results confirmed significant price disparities between pre- and post-subsidy removal periods. The study concludes that immediate policy interventions, such as targeted subsidies and social support, are essential to mitigate inflationary pressures and economic hardship. Policymakers should prioritise strategies to safeguard vulnerable populations and maintain economic stability.
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