Nigeria’s economy has suffered since it is dependent on imports of petroleum products. Petroleum product prices have continued to experience volatility over the period making the economy precarious. On the other hand, the recent price rise of fuel in Nigeria has been an explosive factor that threatens motorists, businesses, households, and any business activity in the economy.
The increase in fuel prices, which was a result of the abolition of fuel subsidy, by the current Nigerian administration of President Tinubu has led to an increase in the prices of goods and services. Every economic activity has suffered from the rippling effects of the high prices of fuel and most men and women who use fuel for their movements, power generation, or other important functions have been unhappy as a result of this.
The sacrosanct consequences of the high price levels of oil have spanned various source points such as logistics and transport, food manufacturing and distribution industry, service provision firms, and many more money-making ventures that aggravate the cost of living within a state and raise the rate of inflation. To maintain the business in the course of unfavorable conditions for the market, every necessity must be done in order to protect and the following measures are: The introduction of new strategies or restrictions to economic operations means substantial losses of business.
Use of alternative fuel source
Energy costs for businesses usually however get worse during fuel price increases resulting in profit reduction. It is very productive for companies to move to other sources so as to continue operating and making a profit. Companies can look for solar units and biodiesel that would cost less and be less susceptible to the price range of fuel.
Adopt energy efficiency measures
In money terms, energy efficiency measures are very useful in counterbalancing the inefficiencies brought about by expensive fuel. This can be done through the acquisition of energy-efficient devices and equipment, installation of natural lighting and ventilation, and elimination of unnecessary consuming activities.
Encourage remote work
Remote working can be encouraged with the help of technology for those functions of the business where physical performance is not absolutely necessary. This will assist in reducing the level of the effect of the rise in the fuel price on the businesses as well as the employees.
Revaluation of prices
Businesses can improve their pricing policies so that there is no price discrimination of goods and services following the rise in the cost of transportation. This can be done in moderation so that profit is made, and the effective fuel price level is improved and where necessary communicated to customers with regard to price alterations.
It is concluded that Nigerian businesses have been exposed to the problems of fuel price volatility because oil is the mainstay of the economy and that measures should be taken to protect and enhance such businesses in such environments.
