GEOGRAPHICAL ANALYSIS OF FUEL SUBSIDY REMOVAL ON TRANSPORT COST IN AKOKO SOUTH WEST LOCAL GOVERNMENT AREA OF ONDO STATE, NIGERIA

This study investigates the effect of fuel subsidy removal on transport cost in Akoko South-West Local Government Area of Ondo State, Nigeria. The objectives were to examine the socio economic characteristics of the residents in the study area; to investigate the effect of fuel subsidy removal on transport cost in the study area; to investigate the impacts of fuel subsidy removal on the socio-economic activities in the study area as well as to examine the effect of fuel subsidy removal in the study area. In view of this, the study adopted survey research method; primary and secondary data sources were utilised to generate data for this study. The instruments used for data collection for the purpose of this study were questionnaire, interview as well as field observation. Therefore, in order to achieve the aim and objectives of this, one hundred and forty (140) copies of questionnaire were administered and retrieved from sampled respondents in the study area using systematic and purposive sampling techniques. Data collected were analysed using statistical tools that is, descriptive statistics (such as frequency distribution as well as percentage) as well as inferential statistics. The inferential statistics will be used to approve or disprove the significant relationship between fuel subsidy removal and increase in transport cost in the study area. From the findings, it was affirmed in the findings higher fuel costs as well as increase in transport cost were evident in the study area and as a result of this, affects both public transportation and individual vehicle owners, contributing to higher overall transportation expenses for good and people in the study area. Conclusively, the findings also ascertained statistically that the removal of fuel subsidy has enormous effect on transport cost in the study area. Therefore, some sustainable recommendations were made based on research findings in order to mitigate the effect of fuel subsidy removal of transport cost in the study area. These sustainable measures include; Government should develop alternative sources of energy for domestic and vehicular use so as to reduce the local demand and price of petrol, government should also target transport consumer subsidies to the poor to ensure affordability while setting fares at cost-recovery while the Nigerian government needs to put in place key palliative measures prior to such a subsidy reform, in order to ensure that increasing