REMOVAL OF FUEL SUBSIDY AND IT'S EFFECTS ON THE PRICES OF GOODS AND SERVICES IN OKITIPUPA LOCAL GOVERNMENT AREA OF ONDO STATE, NIGERIA

Abstract

This study investigates the effects of the removal of fuel subsidies on the prices of goods and services in Okitipupa Local Government Area, focusing on transportation, food, housing,healthcare, and education. With fuel subsidy removal often leading to increased fuel prices, the subsequent rise in transportation costs can cause ripple effects across various sectors. This research examines how these cost increases impact essential services and commodities, contributing to broader economic challenges such as higher house rents, elevated food prices, and increased costs in healthcare and education. Four research questions are framed to answer the topic and one hundred(100) Okitipupa dwellers are used in administering the questionnaire. Findings of this study indicated that fuel subsidy removal have significant effect on the cost of goods. Based on the findings of the study, the following recommendations were made; government should introduce targeted subsidies or financial support for public transportation services to offset increased operational costs and prevent significant fare hikes. Expanding and improving public transportation networks to provide affordable and efficient alternatives to personal vehicle use should be the government motive. Government should provide subsidies or financial support to local farmers to reduce production costs and stabilize food prices; Rental assistance programme should offer financial assistance or housing vouchers to low-income families struggling with increased rental costs; Essential health services should introduce subsidies or financial support for essential health services and medications to mitigate the impact of increased operational costs on healthcare providers and grants and scholarships should be offer to students from low- and middle-income families to alleviate the financial impact of increased education costs.