Author(s)

Nathan Udoinyang

Affiliation(s)

Department of Economics, Ignatius Ajuru University of Education, Rumuolumeni, Port Harcourt, Rivers State, Nigeria.

Corresponding Author

Nathan Udoinyang

ABSTRACT

This research looks at the impact examined the impact of PMS on individual, household and firms in Nigeria spanning from (1970-2024). The study utilized survey method was employed and the population of Nigeria was used for the study. The population was estimated at 144.3 million as of 2006 census. With the implementation of Taro Yamane formulae, the population size was reduced to 400 people. Two states and local government areas were selected from each of the four region of Nigeria out of the 400 questionnaires sent out, a total of 291 respondents from the 4 state returned. With a mean criterion of 3.0, the statistical tools of the Statistical Package for the Social Sciences (SPSS) were used to analyse the study's research questions. Findings from the study show that price hike of petroleum motor spirit brings about reduction of disposable income of individual and household, increase in cost of living, decrease in standard of living, increase in the cost of money spent on transportation, retrenchment of staff as a result of decrease in the demand for goods and services, unemployment, poverty, political instability, social unrest and food insecurity. The study gave some recommendations and concluded that price hike of petroleum motor spirit has negative effect on production which serve as a major problem to firms thereby reducing production and spending on goods and services in Nigeria which virtually increase prices of every good and service thereby reducing the purchasing power of individual and household income.

KEYWORDS

Firms; Household; Individual; Nigeria; Petroleum motor spirit

CITE THIS PAPER

Nathan Udoinyang. The impact of price hike of Petroluem motor spirit on individual, household and firms in Nigeria (1970-2024). Journal of Trends in Financial and Economics. 2024, 1(2): 34-39. DOI: https://doi.org/10.61784/jtfe3019.

REFERENCES

[1] Gatawa N M, Zakari Abdullahi. Impact analysis of petroleum product price changes on households’ welfare in Zaria Metropolis, Kaduna State. International Journal of Humanities and Social Science Invention, 2017, 6(4): 40-49.

[2] Stephen Ikani Ocheni. Impact of fuel price increase on the Nigerian economy. Mediterranean Journal of Social Sciences, 2015, 6(1): 560-569.

[3] Umar H M, Umar S. An assessment of the direct welfare impact reform in Nigeria of fuel subsidy. American Journal of Economics, 2013, 3(1): 23-26.

[4] Gyoh S. Nigeria the case against fuel subsidy and the argument for deregulated petroleum sub sector, 2012.

[5] Yamane T. Statistics: An introductory analysis. Journal of Development Economics, 1978, 11(1): 222-112.