When there’s a hike in fuel in any country the chain of struggle is usually the same as it should be and that’s the high cost of transportation and then followed by inflation and maybe affecting businesses making them decrease their productivity and employees and increase their grocery prices to be able to meet up with their profit margins that have been put in place.
However, in Nigeria when there’s a hike in fuel the chain of struggle starts with businesses increasing the price 3 times the normal rate which then leads to high transport costs because everyone wants to meet their profit margin and cope with the high cost of living. This cycle continues with everyone that runs a business thereby causing hardship and inflation in the economy.
The current removal of subsidies in the country, which was supposed to benefit the economy, has however placed the economy in hardship because there has been a hike in transportation, groceries, foodstuffs, and anything that is related to the usage of fuel. The removal of the fuel subsidy was supposed to benefit the country but because no policy was put in place before the removal of the subsidy it has made it difficult for everyone to adapt.
The effect of the hike in fuel and its impact can somehow be managed but what really affects the citizens is that despite the hike and economic slowdown salaries and not being increased and the minimum wage remains the same. However, there was some news in the early hours of today that a state governor has decreased working days from 5 to 3 to enable workers to adapt to the current situation.
The implementation of this can somehow be beneficial to the workers to enable them to save some cash but what about the effect and impact of it on the business and organizations because it will affect the productivity of the company?
The effect of the hike in fuel usually comes in different ways and forms and different countries have their ways and methods of making sure that it doesn’t have a huge negative effect on the economy that’s why it's important to put in place policies that will help mitigate the effects.