ANALYSIS OF THE PROBLEMS OF PETROLEUM PRODUCTS DISTRIBUTION IN NIGERIA

1.0 Introduction

1.1 Background of the Study

Production is not complete until the goods get to consumers for whom they are meant. A typical firm will discover that the consumers of its product are scattered abroad. The firms decisions to distribute its products directly through own sales outlets or indirectly through marketing intermediaries ie (Wholesalers or retailers) alone in not enough to the goods to consumers the firms has to ensure that the products are actually available at or made available to the distribution outlets.

Adequate care has to be taken of the products to minimize losses or damages and commensurate customer services have to be given in order to ensure customer satisfaction and increased patronage. In other words, there is the need for proper management of the flow of products from manufacturers to consumers in order to achieve consumer satisfaction and the commercial goods of the firm. The attainment of these goals falls into the realm of physical distribution aspect of marketing. The increase snphssis given to the concept of physical distribution in commercial firms and industries since its inception in 1950s is a confirmation of the its immense contribution to the successful achievement of marketing goals physical distribution is the term used to describe all the activities, that have to do with planning and implementing the making or production of goods from the manufactures or sellers to buyers. These activities include the processing of sales order, materials handling inventory management demand forecasting, storage of materials, transportation and customer services among others.

The distribution and marketing of petroleum products.

This started in Nigeria by the year 1907 with the establishment of a link in sumo lower, kerosene, by seconyvacum oil company (now mobile) but today, it has grown to include other multi-national companies. Referred to as the big seven, they includes African petroleum, Total, Agip, National Oil and marketing company, Texaco marketing and distribution of petroleum was in the hand of the private section. Inadequately of the private sector increase of the mid 705 prompting government intervention which led to the construction of extensive pipeline network and strong depots.

The Nigerian National Petroleum Corporation (NNPC) was set up to prospect.

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1.2 Statement of Problem

Distribution is a very important instrument in every marketing organization, industry and retail outlet effectively planned and implemented distribution policies are basically a prerequisite for proper integration of the activities that will eventually used to the activities eventual achievement of the organizational goal, but more often than not, problems tend to exist where policies, are not defined or where they are not existing.

In most cases, prices of the products of petroleum being distributed are highly rated or such products become very scared as a result of the involvement of distribution channels. Many times, this had led the consideration of whether channel members are necessary in distribution and whether effective monitoring of the distribution channel will prevent not only high price and scarcity of the product in question. It will prevent the marketing activities.

More so, in a situation where economic and technological advancement have become a thing to reckon with, the competition in the market place, there is need to improve distribution effectiveness through the wholesalers, retailers and other types of intermediaries.

Availability of product at right time and place, which is t effort of middlemen as at ready mentions. But the dynamic nature of the environment and other bureaucratic bottlenecked can makes this success in distribution not to be realistic. This posses a problem in the distribution of petroleum products. Due tot eh unrealistic incorporation of marketing activities in making the petroleum products available in the market place or rather improve for more effective and efficient distribute.

This study there tried to highlight and to evaluate the problem of physical distribution if the distribution of petrol in Enugu State.

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1.3 Objectives of the Study

This study “problems of petroleum products distribution in Nigeria” is basically aimed at finding the cause of incessant shortage of petrol in Enugu. To find out whether the storage facilitates, provided at the depot and by the oil marketing companies are not enough to ensure steady supply.

The study also aims at reviewing the distributive network of the oil marketing companies. Since a production process is said to be incomplete until goods and services are made available to the ultimate consumer.

The study also intends to assess the ability of the oil marketing companies to meet up with emergencies and unpleasant situation like strike action erratic increases in demand etc.

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1.4 Research Question

The following are the research questions of the study which was investigates.

• What quality of petroleum that is most preferable in Enugu metropolis?

This is the first attempt made by the researcher to get research question about the type of petroleum of oil quality needed among the consumers of the product.

• What variables do consumers consider when buying the products?

Here the researcher to use this, which is based as the nature of planning is being considered among the people or the consumers of the products.

• What are the causes of problems in the distribution of petroleum in Nigeria?
• What is to be considered as the solution to this problem of petroleum distribution in Nigeria on Enugu Metropolis?
• Why is it that government in conjunction with “NNPC” recruit inadequate workers for the production of this fuel distribution?
• Does the NNPC branches to produces oil in Nigeria Port-Harcourt, Warri and Kaduna Manage the company well, if so why thin the problem of petroleum distribution affect them?

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1.5 Significance of the Study

The study is of great importance is that any study carried out in the marketing and distribution of petroleum product would be of significance to all and sundry in the country and Enugu metropolis in particular because of its economic implication.

The study is concerned with identifying the problems of physical distribution and the ways in which the problem could be solved so as to ensure a lasting solution to the problem.

It will assist the oil marketers and dialers to petroleum to improve on their distribution of petrol in Enugu metropolis. Because if these problem will be solved it will benefit the consumers to carryout their marketing programmes.

This study will be of immense benefit to organization that deals on petroleum products in Enugu metropolis and to determine the extent of their oil and petroleum effectiveness. In addition, the study will determine the factors or problems limiting petroleum production distribution of the marketing organization. It is expected that the findings will help to bridge any gap that may exist and to make these petroleum organizations in Enugu metropolis more effective. And more efficient in planning and execution of petroleum policies.

Through this research conducted or investigated the oil / petroleum marketing organizations will understand their shortcomings, problems and weak points and will subsequently adopt measures aimed at enhancing their petroleum distribution effectively and the government should be in position to adopt the right strategies to enable petroleum product distribution marketing organization achieve better goals.

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1.6 Scope of the Study

This study give ways or opportunities for the marketers and distributors of petroleum products to deal with the problems that affect the country particularly Enugu metropolis in the distribution of their product.The organization should avoid protocols and recruit adequate workers fro an improvement and high output for companies. They should also embark on quality raw materials. In other to increase the productivity and distribution of the product in Enugu metropolis.

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1.7 Limitations of the Study

This study is to states the problem we as a researcher encountered while carrying out the research study.

The major limitation of the study includes transportation problem: the researcher encountered transportation problem during the process of carrying out field wok or research at NNPC depot station at Warri, Port-Harcourt Station, due to lack of infrastructure facilities on our major, federal roads that links to the NNPC's locations: the transportation problems was very cost for us to transport our self's another to acquires information's from our respondents, there was a traffic congestion an our roads which made us unable to get a field information in time and as at when due.

Another problem is the “lack of adequate fund to carryout the research work it is an obvious facts that any research work that must be successful ought to involved enough fund to carryout the research.

Due to inability of the researcher to provide adequate fund makes them to lack behind and delayed the project work.

These was the major limitations encountered from the researchers.

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1.8 Definition of Major Terms

Physical Distribution:

This is the efficient and effective movement of goods from suppliers ie manufactures, wholesalers or retailer tot eh ultimate consumers.

Distribution Channels:

They are ways through which goods move from the manufactures to the ultimate consumers.

Customers Services:

These are essential services, that the manufacturers and channel member renders tot eh customers such as good delivery time reliability etc.

Storage:

This involves the availability pf secure premises where goods can b kept safe from the spoilage by water condition

Technological Advancement:

This is the high increase of science and technologies improvement in the production of goods and services.