The Effect of Petrol Price Hike on the Purchasing Power of Average Household in Nigeria: A Case Study of Ibadan South West Local Government Area

The purchasing power of average households in Nigeria is significantly influenced by fluctuations in fuel prices, which have wide-ranging implications for economic stability and social welfare. This study aims to investigate the effects of fuel price hikes on household purchasing power in Nigeria, considering various socioeconomic factors and consumer behaviors. The study employs a survey research design, involving the distribution of structured questionnaires to a diverse group of respondents. The aim was to capture the current trends or characteristics of the situation as it stands during the study period. Drawing on a mixed-methods approach, including surveys and economic analysis, the study examines the relationship between fuel price fluctuations and household purchasing behavior. It explores how changes in fuel prices impact household budgets, consumption patterns, and overall economic resilience. Key findings reveal that fuel price hikes have a substantial impact on household finances, leading to adjustments in spending priorities, reduced discretionary income, and increased financial strain. Socioeconomic factors such as income levels, employment status, and access to alternative transportation play a significant role in shaping household responses to fuel price changes. The study also identifies policy implications for addressing the challenges posed by fuel price fluctuations, including the need for targeted social safety nets, investments in alternative energy sources, and measures to promote economic diversification. Overall, this research contributes to a better understanding of the dynamics between fuel prices and household purchasing power in Nigeria, offering insights for policymakers, researchers, and stakeholders seeking to enhance economic stability and social welfare in the face of energy market volatility.