The current increase in the prices of PMS has compounded the problems that the small businesses encounter, as apprehensively observed by the CEO of a retail wine company based in Abuja, Mrs. Mary Jane.
Specifically, the price of PMS increased from N670 per litre to N897 per litre on September 3, with some stations offering a litre of PMS for N1,100. Jane was really anxious about this raise to the extent of worrying how it would affect her business, which has been operating in the red for several months now.
She stated that they had to purchase 20 litres of petrol today at N1,100 per liter; this cost was estimated at N24,000, adding that they made such purchases at least 10 times a month, meaning they could spend close to N240,000 on fuel alone. She also expressed her concerns regarding the high tariffs on electricity as well as the issue of double billing that are making her financial situation worse.
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According to Jane, the situation was not sustainable anymore with her lamentation, “I have been incurring losses for months now and the taxation system compounded our woes and recent pressures from FCT-IRS for proof of Withholding Tax complicated our future.
Another local businessman, Emmanuel John also shared similar sentiments of Jane, adding that he would have to lay off some of his employees given increasing costs. “If costs continue to rise, I will be forced to let people go; petrol and electricity costs are rising rapidly and I can barely sustain the business,” John revealed.
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With fuel prices still high, small business people such as Jane and John are pulling out all the stops to deal with rising costs that threaten to shut down their businesses in the face of a strained economy.