Fuel price hike raises costs, cuts sales for FCT traders

Some traders in the Federal Capital Territory (FCT) have expressed concern over the impact of the recent fuel price increase on their businesses.
The traders, who spoke in interviews on Monday, said the hike increased transportation costs, reduced sales, and affected profit margins.
A trader in Suleja, Umar Bayero, said the recent fuel price increase had significantly raised his overall cost of doing business.
“As a trader, I depend on transportation both to source goods from suppliers and to move them to my place of business.
“From an economic perspective, this has contributed to higher input costs and reduced my profit margin,” he said.
Mr Bayero said the cost of transporting and restocking his goods had increased considerably since the fuel price increase.
“Depending on the distance and quantity of goods involved, my transportation and logistics expenses have increased by roughly between 30 per cent and 50 per cent.
“Suppliers have also increased their prices because they face higher transportation and distribution costs.
“This has forced me to increase my selling prices to partly compensate for the higher cost of restocking and transportation,” he said.
He said he could not pass the entire increase on to his customers, as many now buy smaller quantities and focus only on essential items.
Another trader, Azubuike Okafor, said the situation had negatively affected his sales and profits.
“Higher operating and restocking costs have reduced my profit margin, and customers having less money to spend has led to lower sales.
“Compared with the period before the fuel price increase, I am dealing with higher costs, weaker demand, and low profit,” he said.
Mr Okafor said he was comparing suppliers to get better prices, buying items based on demand, and managing his stock more carefully.
He called for stable and affordable energy and transport costs, low-interest business loans, and better roads and transportation.
Another trader in Suleja said he now spends an additional N70,000 on transportation.
Haneefa Anegbe of Rubis Mart, Suleja, said transportation costs had significantly increased, driving prices up.
“If the impact is not too much, we absorb it, but when an increase is significant, like when something selling for N60,000 goes up to N68,000, we have no choice but to increase our price too,” she said.
Ms Anegbe said customers’ purchases had declined because people were now more conscious that the year was ending and were saving to meet school fees and other expenses.
“The fact that we are not making sales is because our customers do not have so much to spend, so they have to distinguish their needs from their wants and prioritise their needs.
“Another major thing that will help is if income increases because no matter how many goods you purchase, if you are not selling, then you are not doing anything.
“I believe that if the minimum wage increases or customers earn more, spending will increase. They will be able to spend more to afford their basic needs,” she said.
A resident of Kubwa, Auwal Muhammad, said the recent fuel price increase had affected him in many ways.
“Transportation costs have gone up, and the prices of food and other goods have also increased,” he said.
Mr Muhammad said that he now buys in smaller quantities, avoids unnecessary spending, and plans his expenses carefully.
He called for measures that could help reduce the burden of rising living costs.
Another resident, Fauziya Umar, said the fuel price increase had raised transportation fares and the prices of food and other essential commodities.
Ms Unar said she had reduced the quantity of some items she bought.
“My spending ability has been affected, whereas my income remains unchanged,” she added.
She called for measures to reduce transportation costs and the prices of essential goods, as well as support to ease the burden of rising living costs.
(NAN)
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