Effects of Oil Price Shocks on Rural Household Welfare and Coping Strategies in Zing Local Government Area, Taraba State, Nigeria

Abstract

This study examined the effects of oil price shocks on rural household welfare and coping strategies in Zing local government area, Taraba state. The study adopted a cross-sectional survey research design. Data were collected from 373 rural household heads and adult household representatives selected through a multi-stage sampling technique. A structured questionnaire was used for data collection, while descriptive statistics and Wilcoxon Signed-Rank Test were employed for data analysis using (SPSS). The findings revealed that respondents generally perceived rising fuel prices as having adverse effects on household welfare, with a grand mean score of 3.09. Specifically, respondents reported that rising fuel prices worsened household economic conditions (x̄ = 3.32), increased transportation costs for farm produce (x̄ = 3.18), reduced household purchasing power (x̄ = 3.12), and weakened income stability (x̄ = 3.10). The findings further revealed that the major coping strategies adopted by households included reduced food consumption (x̄ = 3.47), occasional skipping of meals (x̄ = 3.41), increased use of firewood and charcoal for cooking (x̄ = 3.37), and trekking instead of paid transportation (x̄ = 3.29). The Wilcoxon Signed-Rank Test showed a statistically significant difference between household income before and after fuel price increases (Z = -4.541, p = 0.000), indicating perceived declines in household income conditions following rising fuel prices. The study concluded that rising fuel prices placed severe welfare pressures on rural households and recommended improved rural transportation support, efficient fuel distribution systems, and stronger social protection measures.