Towards Examining the Causes of the Recurrent Fuel Shortage in the Downstream Oil Business of Ethiopia
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Date
2019-06
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Addis Ababa University
Abstract
As the country is undergoing sporadic shortage of fuel at different times and the supply chain members give different reasons, sometimes contradicting to each other, the assessment of factors influencing the level and prevalence of this shortage is of paramount importance. The purpose of this paper is to assess the causes of the recurrent fuel shortage in Ethiopia so as to ensure reliable supply of fuel in the country. To meet the purpose, quantitative as well as qualitative assessment of the existing information in the sector were made. From different literature, the study identified factors that are considered as a good measure of these aspects of the fuel supply process. Then, information from primary and secondary sources is used to conduct the assessment. Data were obtained from a sample of 248 fuel station operators, which were taken from the total population of 1006 fuel stations across the country. To select the sample a stratified random sampling followed by a simple random sampling was employed. Analysis of the raw data was approached with the help of both descriptive and inferential statistics. From descriptive tabular, charts and percentages are used. Inferential tools such as correlation and regression analysis are also utilized in the course of this study. Some of the major factors underlying the fuel shortage are petroleum supply infrastructure, regulatory gaps, sentimental factors, oil distributors’ Capability and communication technology. Of all these factors, regulatory gap is the most influential determinant of the problem. Nonetheless, all the aforementioned factors do have a significant effect on the frequency and severity of the fuel shortage. Therefore, the supply chain members and the stakeholders should have a regular review and consultative meeting, maintain collaborative relationship and work collaboratively on development programs and decision making to address the issues of regulatory gaps as well as the other determinants of fuel shortage in the country.
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Capability, Ethiopia, Fuel, Petrol