CHAPTER ONE

1.1 BACKGROUND OF THE STUDY

Initially, before the construction of refineries, petroleum used in Nigeria were imported by international oil marketers popularly known as big 8. They are total, Agip, Texaco, Unipetrol, African Petroleum (AP) National, Mobil and …petroleum. They import market petroleum product and also distribute them. But when refineries were built to produce local petroleum products that will argument the imported ones, it later became necessary for government to take over the importation of petroleum products from oil marketers and thus the resultant setting up of pipeline and product marketing company (PPMC) and independent oil marketers in the early 80’s Nigerians who can afford to construct petrol stations were granted marketers licence by an agent of the federal government (Dept. of petroleum resources) to join in the distribution of petroleum product in Nigeria under independent oil marketers status and ADONRI DAVID Vanguard control of national resources.

Today, the indigenous companies known as independent oil marketers are competing favourably with the big 8 in the distribution of petroleum products. That is because the operation of independent oil marketers cover across the linter lands of the Nigerian communities PPMC set by Nigerian government through the arm of NNPC constructed depots and pipelines across the nation. Linking the depots and refineries, depot to depot and refinery to refinery.

Talking about petroleum product distribution in Nigeria by PPMC, we have three major means by which these products are distributed. The first one is through the pipeline running to the refineries to depots and from depot to depots.

The second one is by tankers through the road and the last is through railways coaches.

1.2 STATEMENT OF PROBLEM

The researcher, seek to study fuel distribution in Nigeria problems and solutions.

Generally, there has been the problem of fuel scarcity up-till now. This is because of uneven distribution of fuel in the country. Since the country had been experiencing fuel shortages, it is important to identify the problems encountered in the distribution of fuel and also to determine the possible solution to fuel scarcity said Mbagron 10, 2001, which he titled economic of resources control.

1.3 OBJECTIVES OF THE STUDY

The specific objectives of the study includes the following:

i) To identify how fuel is distributed by NNPC

ii) To determine the problems encountered in fuel distribution

iii) To determine the causes(s) of fuel distribution problem

iv) To determine solutions to fuel distribution problems.

1.4 RESEARCH HYPOTHESIS

For the purpose of this study the following hypothesis have been formulated

Ho: Inadequate maintenance of pipelines equipment and pumps do not lead to fuel shortages.

HI: Inadequate maintenance of pipelines equipment and pumps do not lead to fuel shortages.

Ho: Delivery of right quantity and quality of petroleum products to filling stations do not promote effective supply of fuel

HI: Delivery of right quantity and quality of petroleum products to filling stations do not promote effective supply of fuel

1.5 SIGNIFICANCE OF THE SUTDY

The study of significance because it will serve as a source of vital information on fuel distribution. It will also serve as a reference for future research in the same field. It will also provide solution to fuel distribution problems.

1.6 SCOPE AND LIMITATIONS OF THE STUDY

The research is geared towards, fuel distribution in Nigeria. Problems and solution. A case study of NNPC Enugu Depot.

The main constraints of the study is divided into three points.

(a) Time

(b) Attitude of the respondents

(c) Finance

Time: Due to the limited time for the study the researcher could not travel to other places for more relevant information on the study.

Attitude of the respondents: The attitude of the respondents affected the research work because some of the respondents were unwilling to co-operate with the researcher because they felt that they have nothing to benefit from the study both financially and otherwise.

Finance: This is one of the most serious constraint the research encountered. A lot of money were required for the study to be carried out properly but however the researcher was handicapped financially.