ASSESSMENT OF THE DISTRIBUTION STRATEGIES OF PREMIUM MOTOR SPIRIT IN NIGERIAN NATIONAL PETROLEUM CORPORATION, ORE DEPOT.

Abstract

Premium motor spirit without gain saying is a commodity which is inevitable to all and Nigeria as a country have gained immensely from the proceeds generated from the sales of PMS. Also over the years, Nigeria economy have experienced major international recognition as a result of this God given resources but the citizenry still experienced major scarcity of PMS. The study therefore assess distribution strategies of PMS in NNPC Ore Depot. In sampling of the opinion of the NNPC executive officer and customers (marketers), the primary (questionnaire) and secondary ( relevant literatures, journals, web-pages, textbooks and newspapers) methods were used, while their responses were analyzed and used to test the hypothesis using Pearson correlation coefficient. The result revealed that truck is the major means of distributing PMS to its numerous customers. Also, there were many factors amidst low capacity utilization and refining activities at the nation’s refineries, pipelines vandalization, large scale smuggling due to unfavourable economic product at home and higher border prices with the neighbouring countries, low investment opportunities in the sector, and corrupt practices by some members of the distribution chain among other responsible for the ineffectiveness of the distribution strategies. The study recommends that government should put necessarily actions in place to checkmate the malice of illegal diversion of the premium motor spirit. The study concludes that these factors mentioned above be either eliminated or reduced and stringent measures be adopted to act as deterrents to other corrupt practices in the distribution chain.