Assessing the Link between Petroleum Prices Hikes on Transport Fares in WA Municipality

Abstract

The research investigated the effects of petroleum price hikes on the transportation business in Wa Municipality. Both quantitative and qualitative research design was employed in the study. Seventy –six (76) out of eighty (80) questionnaires were received. The analysis of data was aided by the use of SPSS and Microsoft Excel. Findings from the research using linear regression models indicated that petroleum price hikes result in higher transport cost. This finding is consistent with an earlier study conducted by Ocheni. The study further revealed that increases in fuel price also triggered high cost of spare parts. The researcher recommends that government should hedge the price of fuel to mitigate the risks associated with price hikes. And also the government should subsidize the cost of spare parts, either through tax-cut or any other means possible in order to reduce the cost burden.