Domestic Fuel Price Hike and Purchase of Cars in Wilayat of Nizwa Sultanate of Oman a Factor Analysis Approach

Hike in domestic oil prices can impact an economy at the micro level and macro level. This study aims at identifying the overriding factors that influence an existing or prospective consumer in their car purchase decision. A sample of 366 respondents holding driving license were taken for the study from Nizwa, Sultanate of Oman. The analysis revealed that the domestic fuel price has affected the respondents in terms of transportation costs, usage of car, cost of other commodities in the market, petrol consumption, decision making with regards to purchase of cars and price of domestic gas.