The literature review considered the meaning of fuel subsidy. Fuel subsidy was defined among others as money that is paid by a government or an organization to reduce the cost of producing goods and services so that their prices can be kept low the theoretical framework of the study was also considered in the light of linking some theories of economics as forming the foundation stratum of this research work. Also, a brief review was done on the trends of fuel subsidy removal and the non-implementation of the promises of government at each time of subsidy removal was considered. Also the various costs involved that lead to the high fuel price in Nigeria was involved. In addition, the cases of fuel subsidy were also considered in relation to other countries and the various stages and process of fuel subsidy removal was also reviewed.
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