THE EFFECT OF PETROLEUM PRODUCT DELIVERY SYSTEM ON THE AVAILABILITY AND EFFICIENCY OF PETROLEUM PRODUCTS DOWNSTREAM DISTRIBUTION IN NIGERIA

Author: Maryam Musa Sada

ABSTRACT

This study evaluated the impact of product delivery system on availability of petroleum product in Nigeria. This study covered the relevant stakeholders which included oil workers and downstream agencies within the Federal Capital Territory (FCT). Primary data was adopted using a questionnaire distributed to 374 participants. In achieving this, this study used the discrete choice model which is the multinomial logit model. The results from the analysis of the primary data reveal that 224 (59.9%) of the participants agreed that ruptured pipes affected the time and duration of products getting to consumers while 150 (40.1%) objected to this. 290 respondents (77.5%) believe that there are not enough pipeline networks in Nigeria. Also, 365 respondents (97.6%) also agreed that functioning refineries will positively affect the transportation of petroleum products through pipeline transport mode. The study recommended that the Nigerian Government should revalidate and intensify policy and project to improve and strengthen the petroleum pipeline transportation system, enhancing product distribution and ease of doing business; Focus on upgrading pipeline technology to meet international standards and global best practices, ensuring timely delivery and reducing time and resource wastage; construct more petroleum pipeline networks to link terminals in commercial cities and factory locations, reducing delivery inefficiency and production costs; implementing policy measures to combat oil theft, pipeline vandalism, and ruptures, minimizing production costs and enabling the removal of product consumption and subsidies.

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