Food Price Volatility And Consumer Purchase Patterns Post-Fuel Subsidy Removal In Abia State
Chukwudi B. Nwosu
Department of Marketing, Abia State University, Uturu
Abstract
To evaluate and better understand the effect of fuel subsidy removal on food prices and consumer purchase behaviour in Abia State: A market dynamics perspective, the study focused on civil servants, lecturers, students, transporters, businesspeople, farmers, and self-employed people who live in Umuahia and Aba metropolitans of Abia State. The study uses both primary and secondary sources of data extensively. Using Topman’s formula, the sample size of 196 respondents was established. With the help of Statistical Package for Social Sciences (SPSS) version 23.0, Ordinal Least Square (OLS) was used to test the presented hypotheses at a 5% level of significance. According to the study, fuel subsidy removal has a significant and positive effect on food prices in Abia State; also, the removal of fuel subsidies has a significant and positive impact on food purchases in Abia State. Again, there is a significant and positive effect of fuel subsidy removal on consumer purchase behaviour in Abia State. In conclusion, the removal of the fuel subsidy has led to higher food prices, which has in turn affected food purchasing and overall consumer purchase behaviour in Abia State. The study recommended that the government and policymakers in Abia State should implement targeted support programs, such as subsidized food vouchers or direct cash transfers, specifically for low-income households to help them manage increased costs while maintaining access to essential items, such as food.