AN EVALUATION OF PIPELINE TRANSPORTATION IN THE MARKETING OF PETROL IN NIGERIA. A RESEARCH PROJECT MATERIAL ON MARKETING

ABSTRACT

This Research examined the relevance of Pipeline transportation to the marketing of Petroleum products in Nigeria.  Toward this end 83 staff of the Nigeria national Petroleum Corporation (NNPC)’s offices in Enugu and Port-Harcourt were randomly selected to form the study sample.  The 83 members of the study sample were given 83 copies of structured questionnaires to complete.  Their responses were used to test four hypotheses formulated for this study.  The result of the test/analyses revealed the following findings.

i.      The use of Pipelines facilitates the effective distribution and marketing of petroleum products in Nigeria.

ii.      Pipelines reduce the costs of transporting and marketing petroleum products in Nigeria.

iii.     Pipeline vandalisation is the major problem impeding the effective use of Pipelines for the distribution and marketing of petroleum products in Nigeria.

iv.          The use of alarm systems and police patrol will reduce the incidence of pipeline vandalization in Nigeria.

 CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND OF THE STUDY

          Pipeline transportation is the youngest among the other means of transportation in Nigeria.  It has not received much attention because of two major factors. One is that it is relatively a recent origin.  Two is the its operations and services are not in the hands of private individuals and companies.  Hence everything about pipeline transportation in Nigeria is strictly in the hands of the federal government.

According to Kupoheyi (2008) pipelines have been in use for transporting materials for centuries.  Hence in the urban areas, pipelines are used for distributing potable water.  Though the pipelines network for the transportation and distribution of water in urban areas are usually short, they uses the same basic principles as the ones for distributing petroleum products.  The point to note here is that pipelines were first used for distributing water.  Later they were used for mooring gases and a variety of liquids within plants, between plants, as well as between locations for apart.  Today pipelines are widely used for transporting petroleum products and some solids that are suspended in liquids over long distances.

Olakunori (2008) reported that petroleum pipelines made only recent discovery into Nigeria.  According to him, the products pumped through the Nigeria pipelines include the following;

–       Premium motor spirit (PMS) otherwise know as petrol;

–       Automotive Gas Oil (AGO), otherwise known as diesel;

–       Household Kerosene, (HHK).

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AN EVALUATION OF PIPELINE TRANSPORTATION IN THE MARKETING OF PETROL IN NIGERIA. A RESEARCH PROJECT MATERIAL ON MARKETING