Any increase in petrol price has always had a direct impact on the cost of goods in the market.
Petrol is essential for production, transportation and distribution, so when prices rise, businesses face higher costs of production, which they often pass on to consumers through increased product prices.
One major impact as earlier noted is on transportation costs. Goods have to be moved from manufacturer to the market, and this process relies heavily on petroleum products. As petrol price increases, it becomes more expensive to transport products leading to higher prices for goods in store.
Additionally, rising petrol costs contribute to inflation. Businesses raise their prices to cover higher transportation and production expenses, causing overall prices of goods and services to also rise. This inflation reduces consumers purchasing power.
To address this issue, the government can promote alternative energy sources like electric vehicles and renewable energy. This is in addition to targeted subsidies and improved public transportation.
Lolade Oladele, [email protected]
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