This development has sparked public anxiety, despite the absence of an official government announcement regarding the implementation of subsidy removal.

The Federal Government in the past had said it plans to remove fuel subsidy in June, while announcing that Nigeria secured an $800 million grant from the World Bank as part of its subsidy palliatives measures ahead of the removal.

However, things are begining to take a new swift after some marketers across the country decided to take advantage of a momentary situation.

Charles Kelechi, a resident of Aba, confirmed to TechEconomy that fuel prices in Aba were being sold at a rate of N660 per liter. He stated that while some fuel stations were selling at excessively high prices, others were closed, instructing motorcyclists and bus drivers to leave.

On Monday night, fuel scarcity was experienced in most areas of Lagos. Akim Sani, a commercial driver, expressed his struggles in obtaining fuel due to the scarcity. He stated, “Even this morning, I am clueless about where to purchase fuel. I am unable to move my car because there is simply no fuel available.”

To address the ongoing concerns, the Asiwaju Bola Ahmed Media Centre has released a statement explaining President Bola Tinubu’s announcement regarding the fuel subsidy removal.

The Centre urges the public to refrain from panic-buying, which has ensued as a result of the speech.

According to the statement, it is important to note that President Tinubu’s declaration of “subsidy is gone” is not a new development or an action taken by his new administration.

He was simply communicating the existing status quo, considering that the previous administration’s budget for fuel subsidy was planned and approved only for the first half of the year.

This means that by the end of June, the Federal Government will no longer have funds to sustain the subsidy regime, leading to its termination.

The statement emphasizes that the panic-buying caused by this announcement is unnecessary and will not take immediate effect.

Furthermore, President Tinubu has outlined his plans to redirect the funds previously allocated to fuel subsidies towards more beneficial investments. These investments will aim to mitigate the effects of subsidy removal on the general public, especially the most economically disadvantaged individuals.

Examples of such investments include public infrastructure, education, healthcare, and job creation, which are expected to significantly improve the lives of millions of Nigerians and enhance their earning potential.

In summary, the statement clarifies that President Tinubu’s remark on the removal of fuel subsidy is not a sudden decision, but rather a result of the previous administration’s budgetary plans.

It also reassures the public that measures will be taken to utilize the redirected funds in ways that will positively impact the population.

There are many factors used in determining the price of a product or service and they can determine your market share.

1. The Price of Your Competition

Your competition comprises of those who have been in the market and established a name, a growing brand, and network, they could be a startup like you and already have a differentiating factor to make customers have a rethink should they consider switching to a different product.

You should consider your price range falling into what is affordable for both the existing and new products, therefore making room for flexibility to accommodate the needed change when it arises.

This shouldn’t mean to copy what the competition is doing, but to watch the changes made by them can give a signal of not just holding the market share but to also establish new connections.

2. Your Suppliers or Service Providers

The supply chain is a key factor in the delivery of superb product or service. Some organizations have created synergy with suppliers that make raw materials available all year round and at a stable price, and this helps with consistency, however, this would not always be the case as the price could change, transportation cost could increase or loss due to theft.

A selection of suppliers with quality service, integrity and proximity to raw materials are best bet that can make the product or service deliver a reasonable price.

3. Packaging of Your Product

Most products are branded with materials that make the exterior attractive to the customer and take a percentage of what the selling price would be.

The acceptance of the “going green” form of packaging that considers reduction in the use of polyethylene is gaining recognition, if affordability for your company is fair, and then adopting a material that doesn’t pose environmental hazards, cheap and easily disposable would make a good price for your product.

4. Energy needs

Most businesses depend on the power grid for their energy needs and this is a recurring expense that needs to be put in the budget to avoid interruptions in power supply which would affect the day to day operations of your business.

To compliment your primary source of energy, it is of valuable consideration to put in place alternative sources of energy. In determining the overall cost used in producing your goods, power supply is pivotal.

5. Cost of Goods

The cost incurred in making a product is referred to as “cost of goods”, which involves the expense in procuring raw materials, the wage of the labour force, processing, packaging and energy needs.

This cost excludes transportation and distribution. Profit on any product or service can only be determined with accuracy when the COGS (Cost of Goods Sold) is known and leading to the possibility of making a sales forecast to know how many units of goods were produced and if all were sold, how much would be recorded as revenue.

About Author:

Emmanuel Otori has over 9 years of experience working with 100 start-ups and SMEs across Nigeria. He has worked on the Growth and Employment (GEM) Project of the World Bank, GiZ, Consulted for businesses at the Abuja Enterprise Agency, Novustack, Splitspot and NITDA.

He is the Chief Executive Officer at Abuja Data School.