Recently, President Tinubu announced the removal of fuel subsidies on PMS. This announcement has led to fuel stations hoarding the available PMS in stock in the hope of higher gains, while some have started selling above the official rate before the official pump price is announced. The effect is evident in the resulting temporary fuel scarcity situation ongoing in the country. As a Nigerian business owner, fuel scarcity is one of the worst things to happen, due to its crippling effect on the smooth operations of businesses. It’s a phenomenon that can happen at any time, just as it does now. From not being able to go to work because you are stuck in long filling station queues to low production due to a fuel shortage, the inability to close sales because your devices are out of battery power, long waits at parks, and a surge in transport fares, some bus and cab drivers even claim to spend the night in the queues to get some work done in the daytime, the sting of the situation hits everyone.
We have curated some helpful tips to help you navigate through a fuel scarcity
Be Prepared: The fuel scarcity issue has become so rampant in the country that one should expect it anytime, so like the scout’s motto, we say, Be prepared and think forward; don’t wait till it happens before you make a plan for the eventuality. It will also help to have some fuel reserved in case it becomes an uncontrollable situation before it results in a total shutdown of your business operations.
Plan and Manage Fuel Usage: Assess your fuel needs and plan your usage accordingly. Prioritize essential activities and reduce non-essential fuel consumption. As long as the situation lingers, give clear instructions to your staff on fuel usage. Also, monitor and track fuel consumption to identify any areas where you can optimize fuel usage and minimize wastage.
Explore alternative Energy Sources: Check for alternative energy sources like solar power, or diesel for certain aspects of your business operations, especially for production/ manufacturing businesses. Consider investing in energy-efficient equipment or technology that can help reduce your reliance on fuel. While the initial investment may be higher, it can offer long-term cost savings and reduce your dependence on fuel.
Prioritize essential operations: Identify critical aspects of your business that require fuel and prioritize them during scarcity periods. Allocate resources wisely to ensure the most vital operations continue smoothly, while non-essential activities may need to be temporarily scaled back or adjusted.
Implement flexible work arrangements: If possible, consider implementing flexible work arrangements such as remote work or flexible working hours. This can help reduce the stress of daily commuting, long waits, and struggling for a bus for your staff; it shows you care about their well-being and ensures their productivity.
Optimize logistics and supply chain management: Streamline your supply chain by collaborating with reliable logistic companies and suppliers who have contingency plans in place for fuel scarcity. Plan deliveries and shipments strategically to minimize unnecessary trips and optimize fuel efficiency.
Maintain open communication with customers: Communicate with your customers about the challenges you are facing due to fuel scarcity and manage their expectations regarding delivery timelines or any service disruptions.
Bonus Tips
Review your Pricing: It’s no longer news that the days of fuel subsidies in Nigeria may be over, this implies a surge in pricing. Fuel, as a major determinant of market prices, will also affect the cost of your products and services. It’s essential that you also consider a price review at this stage and communicate your new price list promptly to your clients. For tips on how to communicate a price increase, read this article.
Diversify your product/service offerings: Explore diversification offerings that are not heavily reliant on fuel, and also consider offering complementary products or services.
Remember, surviving fuel scarcity requires adaptability and flexibility. By implementing these strategies and planning ahead, you can minimize the impact on your business operations during periods of fuel scarcity.
