Perception of Fuel Subsidy Removal among Farming Households in Imo State.

Abstract:

The study investigated the perception of fuel subsidy removal among farming households in Imo State. Specifically, the study ascertained farming households’ awareness of fuel subsidy removal; assessed farming households’ perception of fuel subsidy; identified the perceived causes of fuel subsidy removal among farming households and investigated the perceived effects of fuel subsidy removal on farming households. One hundred and twenty farming households were selected using a multistage sampling procedure. Data were gathered by a structured questionnaire and analyzed using descriptive statistics. The results indicated that farming households were aware (90%) of fuel subsidy removal and perceived fuel subsidy as a benefit given to an individual by the government (x̄=3.0),direct or indirect payment, or privilege granted by a government to private firms, households or other governmental units in order to promote a public objective (x̄ =3.0). Also Farming households perceived the causes of fuel subsidy removal as a means of the Government to increase fuel price in order to generate more revenue. The findings showed that increased in fuel pump price (x̄ =3.5), increased cost of transportation for farm produce (x̄=3.5), increased food prices (x̄=3.5) Limited access to agricultural machinery and equipment (x̄=2.9) among others. The study concludes that farming households perceived fuel subsidy removal as having serious effect on them and therefore recommended that alternative renewable energy sources and investment in the power sector to reduce dependency on fuel should be encouraged. The Government should reduce fuel pump price to ensure its affordability to the farming households.