VOLUME I
INTRODUCTION
1.1 INTRODUCTION TO THE STUDY
Oil is essential to almost every aspect of modern life. A probable shortage or lack of supply would inevitably lead to an unnecessarily high cost of petroleum in the nation if it is considered (Sikkam, 2009).
According to Arinze (2011), the increase in gasoline prices is a sign of poor management. Accordingly, on January 1st, 2012, Nigeria's Federal Government stopped to subsidise the price of petroleum. Low fuel costs have long been a perk for Nigerians, but those days are long gone. Fuel prices should be regulated by the government, set at a fixed price, and only a few times a year. For the most part, the Nigerian gasoline price ranged from 65/liter (US$0.50) to 70/liter (US$0.41) between August 2005 (US$0.50) and December 2011 (US$0.41). Since then, the price has gone up much more. The withdrawal of gasoline subsidies has been a hotly debated subject in Nigeria since it is a key contributor to the country's rising fuel prices.
In addition to raising transportation expenses, the effect of higher gasoline prices might be far-reaching. It has an impact on the price of products and services as well. As a result of the elimination of the gasoline price subsidies, prices for basic necessities like food, clothes, and furniture are rising, while companies are finding it more difficult to operate. There are also greater costs for enterprises to produce energy using gasoline-powered generators, analyst Yvonne Mhango of Renaissance tells the New York Times.
According to Mhango, the majority of Nigerians would feel the pinch of increasing gasoline prices. About 10% of Nigeria's overall food production expenses are attributed to transportation expenditures. According to industry estimates, food processing accounts for around 5% of overall production costs. As a consequence, this research, which examines the impact of gasoline price hikes on Nigerian companies, reveals the ghastly losses that firms confront in the wake of this situation.
1.2 DEFINITION OF THE ISSUE
There has been an unendurable problem for Nigerian company operations owing to the high cost of petroleum prices, which has immobilized many enterprises. Specifically, most firms in Nigeria rely on gasoline to operate their electrical supply machinery (in the absence of electricity) as well as their transportation vehicles. However, the price of gasoline hasn't been stable enough because of the unpredictable growth in fuel prices. Since a result of this, companies in the nation are adversely affected by this issue, as higher costs are incurred in transportation, marketing, and administrative tasks due to the increased costs. Because of this, firms' goods and services are more expensive. As a result, this research examines the impact of a rise in gasoline prices on business operations by utilizing Gourmet Pizza Company as a case study.
INTRODUCTION TO THE STUDY
A case study of Gourmet Pizza Company, Abuja is used to examine the impact of a rise in gasoline prices on business operations. In addition to these particular goals,
To see whether a rise in gas prices has an impact on company performance.
Investigate the link between the rise in gasoline prices and the operating costs of businesses.
Investigate if an increase in gasoline prices affects companies' prices for their goods and services.
To see whether the recent increase in Nigerian gasoline prices has an effect on the profitability of enterprises.
QUESTION FOR RESEARCH QUESTION
Increased gasoline costs: what are the ramifications for business?
Are companies affected by a rise in the cost of gasoline?
How does a rise in gas prices affect the cost of running a business?
Do companies' goods and services become more expensive when the price of gasoline rises?
Is the increase in Nigeria's gasoline prices good for business?
The study's significance is estimated as 1.5.
The federal government will benefit from this research since it will shed light on the importance of a free and unhindered flow of commerce across the nation. Additionally, an increase in gasoline prices might have dire consequences for the economy. In addition, this research will be useful to the general public, students, and scholars.
1.6 AIM OF THE EXAMINATION
This research examines the impact of a rise in gasoline prices on Nigerian businesses. In this research, Gourmet Pizza Company in Abuja is the only location mentioned.
THE DEFINITIONS OF TERMS
All materials that can be made to react with other substances in order to produce heat or work are considered fuels. As well as materials capable of producing chemical energy, the notion has recently been extended to include additional thermal energy sources, such as nuclear power.
A price is the amount of money or compensation that is exchanged for one unit of products or services. The cost of manufacturing, the availability of the desired item, and the demand for the product all play a role in determining a price.
When the government provides financial assistance or support to a certain economic sector, it is known as a subsidy or government incentive. The phrase "subsidy" may refer to any kind of financial assistance, even if it comes from the government.
Commodity Price Rise: This is an increase in the price or value by a certain percentage.
In general, the term "business" refers to organizations that make a profit by offering products or services to customers in return for a fee. Businesses, on the other hand, don't have to make a profit in order to be termed a company. An organization is a company if and only if it exists only to produce a profit.
It is the everyday actions that companies participate in in order to improve the value of the company and create a profit that are referred to as business operations. To make a profit for the business's owners, the operations may be fine-tuned to maximize income generation. Employees assist in the company's aims by completing several duties, such as marketing, bookkeeping, and manufacturing, among others..
.