Petroleum fuel use and its effect on farm household consumption expenditure: Evidence from Nigeria
Oni Timothy Olukunle
Persistent petroleum fuel crisis in Nigeria is hurting consumption and welfare of households. The burden of the crisis is more precarious in the rural area since the rural households purchase the fuel at prices far above the official pump price. Therefore, the study examined socioeconomic determinants and effects of petroleum fuel use on per capita consumption expenditure among the farm households in Nigeria based on the 2020-2019 General Household Survey data obtained from the National Bureau of Statistics. The study used descriptive statistics, random and fixed effect regression model. Three factors significantly influenced per capita consumption expenditure among the farm households. These are cost of petroleum fuel consumed, productivity per hectare attained and household size. The results of the study should serve as an invaluable guide to the Nigerian government and policy makers to ensure farm households have adequate access to petroleum fuels. Suggested policy measures included targeted petroleum fuel subsidy, rejuvenation of domestic petroleum refineries and improved access of farm households to credit facilities to enable adequate use of fuels for farm mechanisation in their production and processing activities.
Oni Timothy Olukunle. Petroleum fuel use and its effect on farm household consumption expenditure: Evidence from Nigeria. International Journal of Food Science and Nutrition, Volume 7, Issue 4, 2022, Pages 96-104