Downstream Petroleum Sector Liberalisation and Price Volatility: Impact on Small Businesses in Enugu State

This study examines the impact of downstream petroleum sector liberalisation, particularly the removal of the petrol pump price cap in 2023, on small and medium-sized businesses in Enugu State, South East Nigeria. The liberalisation policy, implemented as part of the PIA 2021's downstream deregulation framework, has introduced significant price volatility that affects production costs, transport logistics, and retail pricing for small businesses. A cross-sectional survey is administered to 110 small business owners in Enugu metropolis and Nsukka, covering sectors including food production, printing, transportation, and artisan manufacturing. NMDPRA price data and Central Bank of Nigeria inflation statistics from 2023 to 2024 are used as secondary reference data. Findings show that over 65 percent of surveyed businesses report reduced profit margins directly attributable to fuel cost increases. The study recommends a petroleum price monitoring committee with small business representation and a targeted fuel subsidy for productive micro-enterprises. Keywords: downstream liberalisation, price volatility, small businesses, Enugu State, petroleum policy.