Petrol Subsidy Withdrawal and Its Implication on Land Transportation Costs Among Residents of Cross River and Akwa Ibom States, Nigeria

Abstract

Withdrawal of petrol subsidy simply connotes the non-readiness of government to pay for the differential in the pump price and the actual cost of importing petrol. Technically, it means full deregulation of the downstream sector to pave way for vibrant competition by interested investors. With the withdrawal of petrol subsidy, petrol will now be sold in accordance with the prevailing market price based on the actual cost of importation. This study sought to investigate petrol subsidy withdrawal and its implication on land transportation costs among residents of Cross River and Akwa Ibom States, Nigeria. The study employed conflict theory as its theoretical foundation. The theory emphasizes the inevitability of conflicts as a result of the struggle between the haves and the haves-not in the society. This study adopted descriptive survey design, which is more focused on establishing the state of a phenomenon rather than identifying the single causative component. The statistical tool used in this study was the Chi-Square statistical analysis. Information was gathered and findings were discussed using primary data which majorly collated with the aid of questionnaire. The study found that the withdrawal of petrol subsidy has brought significant implication on land transportation costs, causing an unbearable hardship among residents of Cross River and Akwa Ibom States, Nigeria. Among other things, it was recommended that the government should establish comprehensive and well-targeted social protection programmes. These should include direct cash transfers to vulnerable households, utilizing digital payment systems to ensure transparency and efficiency.