Perceived Effect of Fuel Price Hike on Farming Households in Imo State

Abstract

The study assessed the perceived effect of fuel price hike among farming households in Imo State. The study described the socio-economic characteristics of farming households in Imo State; ascertained farming households’ awareness of fuel price hike; identified the perceived causes of fuel price hike; ascertained the perceived effect of fuel price hike on farming activities among farming households in Imo State and identified the coping strategies used among farming households to cushion the effect of fuel price hike in Imo State. A multi-stage sampling was adopted in selecting 120 farming households for the study. Primary data were used for the study using a structured questionnaire. Data analysis employed percentages, means, frequencies and mean score analysis. The result on the awareness of the effect of fuel price hike among farming household showed that all the farmers were aware (100%). farming households perceived fuel subsidy removal (x̄=3.7), instability in government policies (x̄ =3.5), high cost of importation of refined fuel (x̄ =3.4), Non-functional of local refineries (x̄ =3.3) among others as the causes of fuel price hike. Farming households perceived increased cost of transportation for farm inputs (x̄ =3.9), Increased cost of production/farming activities like ploughing, clearing etc(x̄=3.9) Increased price of farm produce (x̄ =4.0), Increased food prices (x̄=4.0), decreased agricultural productivity (x̄=3.4), Limited access to agricultural machinery and equipment,( x̄ =3.3), increased in transportation of farm produce to the market (x̄ =3.4) as the effects of fuel price hike. The highest ranking coping strategies used by farming households were trekking some distances to reduce the cost of transportation (Ranked 1st), Minimising spending habits due to fuel price increase (2nd), Explored the use of alternative energy sources e.g solar panels for irrigation, charcoal, firewood (3rd). Explore the possibility of collective purchasing or bulk buying with others to reduce individual costs (4th) and skipping meals (5th). Educational level, household size and access to credit were the significant socioeconomic variables influencing farming households’ perceived effect of fuel price hike. The study therefore recommends that Nigeria's crude oil should be refined domestically so that the importation of refined fuel can be banned which will reduce the cost of refining and pump price.