EFFECT OF FUEL PUMP PRICE ON PETTY TRADERS IN NIGERIA
The impact of the price of gasoline at the pump on small businesses in Nigeria is huge. Petty traders are self-employed people who run small businesses selling a variety of goods and services. Markets, streets, and other public areas are common sites for them to set up shop. The price of gasoline has a direct impact on these merchants since they are typically low-income individuals who cannot afford to buy fuel in bulk.
When gas prices rise, the expense of getting about also goes up. This means that small merchants that use transportation to convey their wares will have to pay extra to do so. Petty merchants will have a harder time turning a profit as a result of this rise in shipping costs, which will be passed on to consumers.
As the price of fuel rises, so does the price of electricity. In locations without grid electricity, generators are a common source of power for small enterprises. Petty merchants have a hard time keeping their enterprises afloat when the price of gasoline rises because of the additional expense of powering generators.
Raw material prices are also impacted by the rise in gasoline prices. The price of fuel affects the ability of many small business owners to import the raw materials needed to make their wares. As a result, the cost of production rises, reducing the margin of profit for small enterprises compared to their bigger counterparts.
Moreover, customers’ ability to spend is impacted by the rising cost of fuel. If the price of products and services goes up, fewer people will buy them, and business for small merchants would go down. Small company owners are finding it challenging to stay in business as a result of falling sales and profits.
In conclusion, the cost of gasoline at the pump has a major impact on small businesses in Nigeria. A rise in the price of gasoline has a ripple effect on other prices, including those of transportation, electricity, raw materials, and consumer spending power. Because of their modest incomes, petty merchants often struggle to keep their enterprises afloat as prices go up. Keeping small companies afloat in Nigeria necessitates the government to find solutions to problems like high gas prices at the pump.