PIPELINE AND PRODUCTS MARKETING OF PETROLEUM PRODUCTS IN A REGULATED DOWNSTREAM SECTOR IN NIGERIA.

PIPELINE AND PRODUCTS MARKETING OF PETROLEUM PRODUCTS IN A REGULATED DOWNSTREAM SECTOR IN NIGERIA.

ABSTRACT

This study was initiated and conducted to determine the impact of pipeline and products marketing of petroleum products in a regulated downstream sector in Nigeria. The population of the study was 1468 which was presented in the following categories: Category A: Oil Marketers 1258 (Major and Independent Marketers). Category B: Policy markers (110) – Nigeria National Petroleum Corporation (NNPC) and Petroleum Products Pricing Regulatory Agency (PPPRA.)Category C: Senior Staff of Pipeline and Product Marketing Company (100) (PPMC), from which a sample size of 314 was drawn using Yamane (1964) formula. The data collected was by instruments of questionnaire and in-depth interview for primary data, and existing bulletins, journal articles and internet materials for secondary data. The questionnaire was structured on Liker scale five points summated rating and a face to face interview. The use of pilot study was adopted to test the validity and reliability of instruments with a result of 0.985 that indicated high reliability using Alpha Cronbach technique. The research design was a combination of investigative and description. Four hypotheses were tested by using statistical instruments of one way ANOVA and percentage (%) at the unit of 5% percent. Minitab software package was used for the analysis. The findings indicated insignificant difference in the effectiveness of pipeline interlink in the distribution of Petroleum products across the country, There was insignificant difference on whether distributing products through pipeline in a regulated downstream sector will not encourage uniform pump price of products in Nigeria. However, there was a significant difference on whether regulation will not promote local participation of the masses in the oil industry. An insignificant difference was also recorded on adequate supervision of the oil pipeline in a regulated downstream sector. The recommendations include: expansion of existing pipeline network to cover the rest of the hinter lands as to have effectiveness on the end users, regular turn-around –maintenance of nation refineries should be given a full attention as the functionality of oil pipeline depends mainly on the availability of petroleum products, local participation should be pursued vigorously to ensure indigenous presence in the oil and Gas industry, the need for host communities to be involved in the monitoring and supervision of oil pipeline across their domain cannot be over emphasized and full deregulation as the last option to open up the  oil and Gas industry as to create job and reduce youth restiveness and militancy. The researcher developed accuracy model of petroleum products distribution which explained that accuracy of quantity and supply of products can be obtained when the model is put in use (Y=54.53+0.07X).  This is a major contribution to knowledge and the model is highly recommended for government and operators in the oil industry.