A Systematic Review on the Impact of Petroleum Price Volatility on Household Purchasing Power and Consumption Patterns in Nigeria (2020-2024)

This study conducts a systematic literature review to examine the impact of petroleum price volatility on household purchasing power and consumption patterns in Nigeria between 2020 and 2024, using the PRISMA 2020 framework. This review synthesizes evidence from 15 empirical studies, including those from Nigeria and other developing countries, focusing on the economic consequences of rising fuel prices following subsidy reforms. The findings reveal that petroleum price volatility is a major driver of cost-push inflation, significantly increasing the transportation, food, and energy costs. Households, particularly those with low-income and rural backgrounds, have experienced severe welfare losses, reduced savings, and changes in consumption behavior, including a shift toward cheaper energy sources and a decline in dietary diversity. Similar patterns are observed in developing countries such as India, Ghana, and Kenya, underscoring the universal effect of fuel price shocks on household welfare. The review concludes that without targeted social protection measures, the removal of subsidies exacerbates poverty and inequality. Recommendations include implementing cash transfer programs, promoting local refining, and adopting gradual subsidy reforms to mitigate the adverse effects. This study contributes to the policy debates on energy pricing, household welfare, and sustainable development in Nigeria.