Assessing the Economic Consequences of Fuel Subsidy Removal on Road Transportation Cost in Delta State, Nigeria
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Oghenenyerhovwo Elvis Adogbeji*
Bright Ogbe
This study examines the impacts of fuel subsidy removal on transportation cost in Delta State, exploring the consequences for commuters, transport operators, and propelling the best policy that can help reduce the effect on road transport users. The removal of fuel subsidies in Nigeria has significantly impacted the transportation cost, with pronounced effects in Delta State. This impact is largely attributed to the surge in petrol prices following the subsidy removal, leading to increased transportation costs. The study adopted the Resource Dependency Theory (RDT) to explain how external resources influence the behavior and survival of organizations. Simple percentage and chi- square was used to test the hypotheses while 240 sampled respondents completed a structured questionnaire that was used to collect data from respondents. The study finds that the removal of fuel subsidy has affected transportation cost in Delta State and Government policies so far to suppress the effect of this fuel subsidy removal on transportation cost is not yielding positive result yet. This study recommended that Delta State Government should return Delta Mass Transit popularly known as Uduaghan Bus as a way of helping to reduce the cost of transportation in Delta State and also recommended the need to subsidize the purchase and use of electric cars for transportation in Delta State.
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