IMPLICATIONS OF FUEL SUBSIDY REMOVAL ON THE MARKETING OF PALM OIL IN NSUKKA LOCAL GOVERNMENT AREA OF ENUGU STATE, NIGERIA

Abstract

The study examined the implication of fuel subsidy removal on the marketing of palm oil in Nsukka Local Government Area of Enugu State, Nigeria. Four research questions guided the study. Data used for the study were collected with the aid of a structured questionnaire, interviews and observations. Descriptive statistics and price index analysis were used to analyse the data generated from the respondents. The result showed that the removal of fuel subsidy has really affected the marketing and distribution cost of palm oil, brought about an increase in the selling price and a reduction in the profit marketers make. Challenges encountered by the marketers include, high transportation, multiple taxation, price fluctuation, and inadequate sales compared to the previous. It is recommended that before pronouncing and implementing subsidy removal, government should prepare well and make provisions for her citizens that will help cushion the negative effects on the consumers. That the removal of fuel subsidy should be done gradually, noiselessly and in stages. Dormant refineries should be revived to full capacity and palm oil marketers should form cooperative societies to help them have a voice, access credit facilities and cross pollinate ideas for profitable palm oil marketing