Petrol Subsidy Removal and its Impact on Household Income in Bayelsa State: A Study of Igbogene and Akenfa in Yenagoa Metropolis

This study examines the impact of petrol subsidy removal on household income in Bayelsa State, focusing on Yenagoa metropolis. Petrol subsidy removal has been a highly debated issue among political analysts and economists in Nigeria since the return of civil rule in 1999. The government’s argument for fuel subsidy removal is based on the claim that the petrol subsidy is a drain on government finances and fosters corruption in the downstream sector of the oil industry. On May 29th, 2023, fuel subsidy was eventually removed by President Ahmed Bola Tinubu in his inaugural speech. This led to an unprecedented rise in transportation fares, food prices, and the cost of goods and services in Bayelsa State. This study aims to analyze how the removal of fuel subsidy has impacted household income in the Yenagoa metropolis of Bayelsa State. The study adopted the descriptive survey research design, using questionnaires and oral interviews to gather primary data from residents in Igbogene and Akenfa in Yenagoa metropolis. A total of 300 questionnaires were administered, with 224 retrieved. The findings revealed that the removal of fuel subsidy has reduced the purchasing power of families, affected the standard of living in families, and increased the level of poverty in the country. The study recommends measures such as monthly cash transfers to vulnerable citizens, subsidized essential goods, and price controls on essential items to mitigate the impact of fuel subsidy removal in the country.