IMPACT OF PETROLEUM PRODUCTS DISTRIBUTION ON ECONOMIC DEVELOPMENT

THE IMPACT OF PETROLEUM PRODUCTS DISTRIBUTION ON NIGERIA’ ECONOMIC DEVELOPMENT ( A CASE STUDY OF TOTAL NIGERIA PLC EKWULOBIA

ABSTRACT

The topic of this research work is The impact of petroleum products distribution on Nigeria’s Nigeria economic development . A case study of total Nig. PLc. Ekwulobia. ANAMBRA STATE. This research work has been directed towards petroleum supply and distribution. A case study  approach was adopted and to achieve the objective of this research work, questionnaires were administered on

TO PLACE AN ORDER FOR THE COMPLETE PROJECT MATERIAL, pay N3, 000 to:

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After payment, text the name of the project, email address and your names to 08064502337 the company’s staff whose duty has to do with the supply and distribution of the petroleum product. Some of the marketers and tankers drivers were interviewed. The questionnaires, the answers from the personal interviews were reviewed and the problems in supply and distribution of the petroleum products, assessed. According to depot sources the distribution facilities are inadequate. The company does not monitor the tanker drivers to their designation.   Finally, meaningful suggestions on eh basis of the analysis and finding are put forward. Some of the recommendations include the immediate implementation of the proper correction monitoring and prevention procedure right of way (ROW) clearing between Atlas cove and Mosimi and increase in frequency of surveillance. The marketers should not be restricted to  their supply of products to sales outlet and they should create a good working relationship and atmosphere with the tanker drivers who distribute the petroleum product to the depot outlets.

CHAPTER ONE

INTRODUCTION

1.1  BACKGROUND OF THE STUDY

In June 2003, the national witnessed a popular protest  and a week long strike action following the arbitrary increase in eh pump prices of petroleum products by the Nigeria National petroleum corporation (NNPC and the Federal Government the nation wise strike led by the Nigeria labour congress (NLC) was called  of following negotiations with the federal a downward review of price of petrol to N22. N19 and N17 from N29 and N27 respectively National petroleum corporation (NNPC). That was just one of the  several industrial disputes between the Federal Government and labour Union, with repute to petroleum products price increase. Central to the agreement between government and labour is the need for Nigeria National petroleum corporation (NNPC) to evaluate all aspects of petroleum with specific reference to product supply and distribution Ami (1999: 28)

In a subsequent nation wide address on Thursday 15th June, the president among other thing expressed regret over non consultation before the earlier price increase that resulted in such avoidable and protracted crisis. He went further to underscore the imperative of consultations over national issues, such  as fuel price increase. The government gave effect to the agreement, with respect to Nigeria national petroleum corporation (NNPC) by the formation of a petroleum products regulation committees. August 2003, when the secretary to the government of the federation abong U Fot. J. Ekaete inaugurated them the terms of reference were spelt out as follows.

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To appraise are aspect of petroleum products supply distribution in Nigeria economy and make appropriate recommendation the synthesis of a structure for petroleum production and distribution to be for this and subsequent dent financial years, which is viable and sustainable. This will be characterized by absence of monopoly and freedom of several competing marketers to import and export products while encouraging private ownership of refineries.

Phased reforms and price adjustments which will achieve necessary self financing and a sustainable system and prevent the trepidation and economic disruption usually associated with petroleum products pricing.

A programmed consultation and  public enlightenment to facilitate the smooth implementation of the necessary reforms. Any other measure which the Nigerian national petroleum corporation (NNPC) may deem necessary or appropriate in eh circumstance.

Historically, major petroleum marketing companies were the main sources of petroleum products supply. The companies transported and distributed the produces transported and distributed the product relying on their distribution and retail outlet. This was an  area of deregulation in which Nigeria paid market determined prices for products. Prior to 1973, seven marketing companies controlled marketing and distribution of the products.  The exchange rates were then relative stable thus allowing for planning on the part of he major petroleum marketing companies to source products for imports. However this arrangement was not sustainable given  that it was dependent on the profit and market imperative of the oil marketers those companies included shall B.P mobil, Agip, Taxaco and Total. The rate of consumption of petroleum  product soon exceeded the capacity of Nigeria petroleum refinery company  limited (NNPC) owned by shall and Total to deliver products to the economy. Above all the arrangement was import dependent. Culobal cost inflation in 1973 undermined the capacity of marketing companies to reliever imported product at affordable prices. The country’s economic activities expanded in the seventies such that private companies could no longer cope with the increased demand for products. This resulted in the erratic supply of petrol and Kerosene and ultimately acute scarcity of the product.

The shortage was endemic and created social and economic dislocation in the country the market failure made government to venture into petroleum  product marketing and distribution. Owukem (2002:87). The concern by government to over come this lack of policy and total dependence on oil companies led to the policy shift towards regulation. Government therefore introduced uniform pricing after constructing a 300km para total Nig Plc is a subsidiary company that distributed consumer petroleum products in Nigeria  since 50 years now. It has the largest distribution network in Nigerian, and the largest market share (about 151 and  is one of best performers in the Nigerian stock exchange (NSE) pipeline distribution network linking all the refineries in port Harcourt (expanded in 1971) Warri. Commissioned in   1979 to Kaduna commissioned in (1980) and port-Harcourt “Commissioned in (1988) to safety domestic demand, strengthen self reliance and avoid a situation in which the oil companies could  hold the country to ransom.

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Nevertheless, we have returned to the era of deregulation with total Nig Plc as a major players in it.

1.2  STATEMENT OF THE PROBLEM

Many people do not know “The socio economic impact of petroleum products and the implications of their supply at affordable prices for the citizenry, industry and government. The researcher is of the belief that cruse oil petroleum product are sources of revenue to the government for reviewing the economy.

The following statements reflect the problem of this research work.

  1. Reoccurring fuel scarcity in the country.
  2. High duel price instability in Nigeria and at Total Nig Plc.
  3. Pervasiveness of corruption in the petroleum sector.
  4. Repeated closure of Total Nig Plc filling station at Ekwulobia
  5. High level of insecurity and crime Anambra State and Nigeria as a whole.

1.3  PURPOSE OF THE STUDY

The purposes of carrying out this study include.

  1. To evaluate all aspects of petroleum product supply and distribution in Nigeria A case study of Total Nig Plc, Ekwulobia
  2. The study will consider the problem of protoplasm products supply and distribution in Nigeria.

1.4  SIGNIFICANCE OF THE STUDY

The relevance of eh research under study is to make Nigeria National Petroleum corporation and Total Nig Plc embank on better distribution activities which will reduce problem associated with supply of the product.

To suggest ways in which the products  could be distributed with less effort and constraints. This research will also evaluate the causes of scarcity and make some recommendations on how to minimize or totally stop the petroleum product  scarcity in the country Nigeria.

1.5  RESEARCH QUESTIONS

The following are the research question

  1. What are the problem encountered in supply of petroleum products. By Total Nigeria?
  2. What is the importance of the oil industry in Nigeria?
  3. What types of petroleum products does Total Nig Plc deal in?
  4. What are the uses of petroleum products in Nigeria.
  5. Is the distribution channel mostly involved in the supply of petroleum products  the direct or indirect.
  6. Is it necessary for a five officer to sing an approval form for independent marketers wishing to construct a filling station.
  7. Where can we find fuel depots in Nigeria?
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1.6  HYPOTHESIS

To guide the research in the project, an hypothesis was formulated.

Ho:          The Nigeria “National Petroleum corporation does not effectively, monitor and coordinate the supply and distribution in Nigeria.

Hi:           The Nigeria National Petroleum corporation effectively monitors and coordinates fuel supply and distribution in Nigeria.

HO2:         Petroleum markers in Nigeria do not engage in hoarding.

Ho3:         Filling station in  Nigeria are generally, not customer friendly.

Ho3:              Filling stations in Nigeria are not generally customer friendly.

1.7  THE SCOPE OF THE STUDY

Is restricted to the distribution of petroleum products in Nigeria. Consequently no attention at all is paid to the distribution of other products in eh country.

1.8  DEFINITION OF TERMS

At this point, it is necessary to defined  some of eh terms used in the research work  this is because of the usage of some words, which may mean different things to different categories of people.

Therefore, to reduce or ambiguity were are going to look at the following terms.

PRODUCTS: Any thing that can be afforded to a market for attention acquisition, use or consumption and that might satisfy a need or want.

PETROLEUM: Is a mixture of hydrocarbon oil obtained below the surface of  the ground.

AGO: Automatic Gasoline Oil (Diesel) pries Petroleum motor  spirit. DPK: Due purpose kerosene

ATK: Aviation turbine kerosene

NLC: Nigeria Labour congress

NNPC:     Nigeria National Petroleum company

NPRC:     Nigeria petroleum refinery Corporation.

LPG:                Liquefied petroleum Gas.

————- this is an incomplete article ———– it’s a product of a high quality project researched work.

Project topic: THE IMPACT OF PETROLEUM PRODUCTS DISTRIBUTION ON NIGERI’ ECONOMIC DEVELOPMENT ( A CASE STUDY OF TOTAL NIGERIA PLC EKWULOBIA

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