ANALYSIS OF THE PROBLEMS OF PETROLEUM PRODUCTS DISTRIBUTION IN NIGERIA

Background to the Study: Production is not complete until the goods get to consumers for whom they are meant. A typical firm will discover that the consumers of its product are scattered abroad. The firms decisions to distribute its products directly through own sales outlets or indirectly through marketing intermediaries ie (Wholesalers or retailers) alone in not enough to the goods to consumers the firms has to ensure that the products are actually available at or made available to the distribution outlets.

Adequate care has to be taken of the products to minimize losses or damages and commensurate customer services have to be given in order to ensure customer satisfaction and increased patronage. In other words, there is the need for proper management of the flow of products from manufacturers to consumers in order to achieve consumer satisfaction and the commercial goods of the firm. The attainment of these goals falls into the realm of physical distribution aspect of marketing. The increase snphssis given to the concept of physical distribution in commercial firms and industries since its inception in 1950s is a confirmation of the its immense contribution to the successful achievement of marketing goals physical distribution is the term used to describe all the activities, that have to do with planning and implementing the making or production of goods from the manufactures or sellers to buyers. These activities include the processing of sales order, materials handling inventory management demand forecasting, storage of materials, transportation and customer services among others.

The distribution and marketing of petroleum products.

This started in Nigeria by the year 1907 with the establishment of a link in sumo lower, kerosene, by seconyvacum oil company (now mobile) but today, it has grown to include other multi-national companies. Referred to as the big seven, they includes African petroleum, Total, Agip, National Oil and marketing company, Texaco marketing and distribution of petroleum was in the hand of the private section. Inadequately of the private sector increase of the mid 705 prompting government intervention which led to the construction of extensive pipeline network and strong depots. The Nigerian National Petroleum Corporation (NNPC) was set up to prospect.