The Impact of Fuel Subsidy Removal on Public Transport Operations in Lokoja Metropolis

Abstract

This study investigates the impact of the 2023 fuel subsidy removal on public transport operations in Lokoja. The major aim of the study is to ascertain the Impact of fuel subsidy removal on public transport operations in Lokoja metropolis and objective is to examine the impact of fuel subsidy removal on the cost of operating public transport. The study adopted cross sectional survey, research instrument used was questionnaire. Analysis of Variance (ANOVA), descriptive and regression (linear) and, Chi square test was used for analysis. Statistical package for the social science (SPSS)v25 was used for the analysis of the research, 323 operators were sampled. Regression (linear) analysis was carried out on the impact of fuel subsidy removal on the cost of operating public transport, results show p=0.00<0.05 meaning there is statistically significant relationship between independent variable fuel expenditure and dependent variables maintenance after subsidy removal and other expenses. Chi square test was carried out between various variables vehicle type, route plied, fuel expenditure and passenger per trip. The results from the chi square test shows there is a statistical relationship between variables p=0.00 <0.05. The study concluded that the removal of fuel subsidy has had a profound impact on public transport operations in Lokoja metropolis. The study recommends the government should consider investing in mass transit, providing incentives on fuel efficient vehicles and transitioning to alternative energy sources for public transport.