Evaluation of the Impact of Fuel Subsidy Removal on Family Income and Sustainability in Ondo City, Nigeria

Abstract

This study evaluated the impact of fuel subsidy removal on family income and sustainability in Ondo City. The study adopted a descriptive survey research design. Three (3) research questions guided the study. The study population was comprised of all household members in Ondo Metropolis. The total population of the study is two hundred and fifty-three thousand, four hundred and sixty-two (253,462). The sample size was one hundred and eighty-five (185) and was randomly selected using a simple random technique. A structured questionnaire was the research instrument used to elicit responses from the respondents. Split-half reliability was used to determine the instrument's consistency, and a correlation coefficient of 0.76 was obtained. Data collected were analysed using descriptive statistics. The findings revealed that the fluctuation of oil prices in the international market necessitated subsidy removal, and the higher cost of transportation increases the cost of food items. The study concluded that the factors that necessitate fuel subsidy removal have a significant relationship with the possible challenges encountered by households in family sustenance. It was therefore recommended that the government's actions, such as increasing civil servants' wages and providing incentives for business owners, could enable them to cope with the increasing prices of commodities, offering a hopeful outlook for the future.