THE IMPACT OF SCARCITY OF PETROLEUM PRODUCTS IN ENUGU STATE

THE IMPACT OF SCARCITY OF PETROLEUM PRODUCTS IN ENUGU STATE

ABSTRACT

This research study focuses on the impact of scarcity of petroleum products in Enugu State a vivid study on Enugu and its environs.  The study tries to look in the researcher point of views on what should be done for continuous flow of petroleum products in Nigeria, Enugu State in particular.

The research consulted some literatures related work, like Tijani Alawe (2002) African Journal of Business and Economic Research vol. 2 Awowele Francis B. (2003) Prof. Jerry Gana government spokesman blamed the shortage on sabotage daily Champion, March 20.

And this work was design purposely to find the root cause of fuel scarcity to analyze critically the impact of oil scarcity in Enugu State and entire economy to offer meaningful suggestions as to find a lasting solution.

Method used in the collection of data are primary and secondary method in the primary data collection method, personal interview, questionnaire personal observations were adopted within the study area of Enugu State.

Also secondary data collection was used as an additional source of data, the use of literatures related textbooks, newspaper, journals and other forms were adopted.

One may conclude therefore that the practice of strategic management in the corporation is not yet total or fully adhered to professional to be able to create a very wide margin of performance safety.

Furthermore, government should review the margins of the oil marketers close to the recent levels that existed prior to the recent changes in the price of products.  This pricing strategy would terminate all the gully developments and ensure that product reach the filling stations.

The following solutions are recommended to put an end to petroleum products scarcity in Nigeria, Enugu state in particular.

NNPC should try to increase the volume of crude oil produced, and also try to increased the actual amount of crude oil reserve for strategic reasons.

It is not too much to has new refineries, rehabilitate the old existing ones at home.

They should be continuous training and training of experts and staff to improve individual and corporate competence.

The research findings were given possible solutions which when applied effectively would stop this ugly phenomenon of petroleum scarcity in Enugu State.

CHAPTER ONE

INTRODUCTION

1.1              BACKGROUND OF THE STUDY

The Nigerian Economy can largely be described as one with a strong petroleum industry super imposed over an undeveloped industrial base.  Presently Nigeria is growing into a mono-economic country by depending majorly on oil revenue.  The dominance of oil production at the end of the civil war (1967 – 1970).  It usually became predominant after the fuel price increase of 1973/74.  Most recently is the one about to struck the nation now, taken from Daily Champion Newspaper.  Monday March 17, 2003, “fuel price like NLC threatens showdown with FG” was the caption.  Which the NLC and TUC later embarked on, started from June 30 and suspended it July 8, 2003.  I wonder were we are heading to, I doubt if the federal government understands, that the comfort of her citizens is the pride of a government.  Fuel supplies the federal government revenue of about 90% of the countries foreign exchange and supply over 75% of federal government revenue.

THE IMPACT OF SCARCITY OF PETROLEUM PRODUCTS IN ENUGU STATE