Project Materials

EFFECT OF TRANSPORTATION ON THE PRICES OF COMMODITIES.

ABSTRACT

This study looked at how transport affected commodity pricing in Edo State’s Oredo Local Government Area. In this study, primary and secondary data were analysed to determine the consequences of a dysfunctional transportation system on commodity pricing. This research focused on the factors that contribute to a poor transport system, as well as ideas for how to improve it.

Chapter one

INTRODUCTION

BACKGROUND OF THE STUDY

The current situation of continuous rise in prices of commodities (consumable and durable) throughout the country is well known to the populace, and as a result, the price increase has affected individuals in a variety of ways, such as a reduction in living standards, high interest rates, and so on.

The factors influencing this price escalation of consumable and durable commodities are broadly classified as human and natural factors. First and foremost, if many middlemen participate in the process of distributing goods, the prices of consumable and durable commodities will rise.

Furthermore, it has been demonstrated that production costs have a direct impact on the price of goods, as every manufacturer has a duty not only to recover investments but also to maximise profit. Second, the costs of products can be linked to natural causes that are beyond human control.

For example, a stretch of unfavourable weather with significant rains will undoubtedly result in low production output. As a result, the supply of consumable products is reduced, and prices rise. It follows that the price of items is inversely proportional to the market supply.

Aside from the factors mentioned above, other factors such as transportation costs, labour, and, in general, all of the precautionary factors contribute to the significant increase in the prices of consumable products.

All of these costs are added to the actual cost of the product in order to inflate or raise prices. As a result, as the prices of these factors rise, so will the prices of production, and vice versa.

STATEMENT OF THE PROBLEMS

The main focus of this research is transportation, specifically the effect of transportation on prices, and how a poor transportation system affects the costs of consumable and durable commodities.

Also what link has distance with these products that are transported have on the respective costs of each products? Does a good transportation system cut the cost of consumable and durable goods in any way? These are the aforementioned background questions for this investigation.

PURPOSE OF THE STUDY.

The goal of this research is to examine the effects of transportation on the relative costs of some selected products in Oredo L.G.A., Edo State.

This study will also look at the relationship between transit and the cost of consumable products in this local government region.

This study will also attempt to demonstrate the effects of the high price on those who consume the gods (the consumer).

Finally, identify and provide a strategy or remedy to combat the price increase.

Significance of the Study

This work will make significant contributions. In the first instance the study will clearly indicate how transportation cost effect the costs of consumable and durable products.

It will also demonstrate the various forms of transportation found in Oredo Local Government Area of Edo State and the problem connected with them.

The government, for its part, has been inattentive to transport concerns in the majority of Local Government Areas, resulting in a weak transit system. As a result, the relative price of consumable and durable products has increased.

In summarising therefore, a critical analysis of all the points aforementioned will allow the government to look at these problems of inadequate and inefficient transportation system especially at the local government level and discover possible solution to ease the misery of the people (consumers).

RESEARCH QUESTIONS

1. Transportation costs have no substantial effect on commodity prices in the Oredo Local Government Area of Edo State.

2. Commodity prices in Edo State’s Oredo Local Government Area are unaffected by a bad transportation system.