Effect Of Pricing Policies And Regulation On The Petroleum Supply Chain Effectiveness The Case Of Total Ethiopia S.c.

The demand for petroleum products in Ethiopia have increased over the past decade in parallelrnwith the country’s growth rate. As the demand for petroleum products increase, the supply chainrneffectiveness have become an important issue on delivering the required level of performance. Thisrnresearch made its main objective to examine the effect of pricing policies and regulations on thernpetroleum supply chain effectiveness for the case of Total Ethiopia Share Company. The effects ofrnpricing structure of fuel, marginal gain from fuel sales, and fuel transportation rate (the factorsrnof petroleum pricing policies and regulation) on the petroleum supply chain effectiveness werernanalyzed. Explanatory research design was used to identify pricing policies and regulation factorsrnand to examine the effect of pricing policies and regulation on the petroleum supply chainrneffectiveness. Descriptive and inferential statistics (correlation and multiple linear regression)rnwere used to analyze the data gathered. Self-administered questionnaires and structuredrninterviews were used to collect primary data and purposive sampling technique were implementedrnon selecting participants that have a direct involvement with the supply chain and 51 employeesrnof Total Ethiopia S.C. were participated on the research. IBM SPSS Statistics software (versionrn26) were used to encode and analyze the primary data gathered through structured questionnaires.rnThe reliability of the data were checked by using Cronbach’s alpha coefficient value and the resultrnof the analysis showed higher internal consistency reliability. According to the result obtainedrnfrom the correlation analysis, all the factors of petroleum products pricing policies andrnregulations were positively correlated with the petroleum supply chain effectiveness. The modelrnsummery from multiple regression analysis of the surveyed data further showed that the value ofrnR and R Square of the model explains more than half of the variance in the petroleum supply chainrneffectiveness. The multiple linear regression analysis on the survey data also revealed thatrnmarginal gain on fuel make the stronges, unique and statistically significant contribution to thernprediction of petroleum supply chain effectiveness.

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