CHAPTER ONE
1.0
INTRODUCTION
1.1 AN
OVERVIEW OF THE STUDY
In the
past Nigerians solely depended on the exportation of agricultural product for
their source of income,. This continued
until the discovery of the presences of the presence of oil in our country,
especially in Port Harcourt. This made them (Nigerians) to divert form
Agriculture to the exportation of oil to other countries, which was actually
fetching them much money even till this present time.
There
are many subsidiary oil companies scattered all over the country but the
biggest among them is in port-Harcourt and it is called the Nigerian National
Petroleum Company (NNPC). It is from here that crude oil is extracted from the
ground refined to get those components like fuel, kerosene and gas.
There
are depots scattered all over the country like shell Port-Harcourt, NNPC Enugu,
Eif oil Company, Warri Pipeline are directed towards these oil companies to
facilitate distribution. Tanker drivers
and other dealers will load form the depot and distribute to filling stations,
then the consumers will buy form the filling stations.
Fuel
supply has been moving smoothly in the country before the announcement of the
budget by the head of state in January last four year 1999. it was in February
1999 that the whole issue of fuel scarcity started. This has made it difficult for the government
to accomplish that which it proposed to do I the budget.
1.2
STATEMENT OF THE PROBLEM
The word “Scarcity” means when there
is insufficiency of something. Since
there is insufficiency of fuel it is termed as fuel scarcity.
In the past, there has not been any
services fuel scarcity, everything was moving smoothly, the industrialist both
public and privates, does not have any problem.
Economically the price of goods and services, were affordable by the
people. Car owners can just go to filing station and buy fuel at a normal price
of N22.00 per liter and with much ease.
Things were moving smoothly in the
country and in this part f Enugu metropolis until 1994 when we had one case of
fuel scarcity not until on up till this movement of this study.
Because of fuel scarcity, people are
so desperate to by fuel for their business. For this reasons, whenever any
information was passes concerning the presence of fuel in any filling station,
car owners will go there and que -up. Some of them will have to sleep in the
filling stations a day or more than two days while waiting for their turn. People or car owners when they cannot buy
fuel in any filling station, are forced to buy from the black market at an
exhobitant price. Some people use big
gallons to buy fuel that will serve them for some days.
For the reason that there is
insufficient fuel in the filling station, makes people sell fuel in ration so
that everybody present will buy. The car
owners who think the fuel will not reach tem will start jumping the que,
thereby causing fights among themselves.
Because of this reason, the filling station owners invite soldiers so
that there will be peace and orderly que in the filling stations. Fuel scarcity
are sometimes artificial in the sense that during the Christmas period. Filling
station owners will just hoard their fuel in order to sell at a high price.
1.3
OBJECTIVES OF THE STUDY
This study has the following
objectives:
–
To
find out the causes of fuel scarcity
–
To
recommend what can be done to solve the problem of fuel scarcity.
–
To
find out how the fuel scarcity has affected the business men and women civil
servant etc. (the total population of Enugu metropolis).
1.4 STATEMENT OF
HYPOTHESES
Ho: The
middle men have not been contributing to fuel scarcity.
Hi: The
middle men have been contributing to fuel scarcity
Ho: Fuel
scarcity is not the cause of high cost of transportation
Hi: Fuel
scarcity is the cause of high cost of transportation
1.5 SIGNIFICANCE OF THE STUDY
This
study will be of great benefit to the Nigeria National Petroleum Company (NNPC)
who is not the sole cause of fuel scarcity.
This study will help them to find out those people or those things that
contribute to fuel scarcity and take drastic measure to combat them.
This
study or research will be of immense benefit to the government because if there
is fuel scarcity, it then means that crude oil is also insufficient by this;
the government will not have enough oil to transport in order to get foreign
exchange.
This
study will also be of great benefit to car owners and businesses because if the
fuel scarcity is rectified and resolved all business will start improving and
progressing.
From
this study, the rural drivers will find it easy to transport their farm product
from the rural area to urban zones because the cost fuel will be on a lower
side.
Also
from those research work, it will be kind of encouragement. In that when the cost fuel is low, the cost
of transportation will be also low, and these can lead also to low price of
commodity been transported.
1.6
SCOPE OF THE STUDY
This study is carried out in Enugu
metropolis to study the operation of the Nigerian national petroleum Company
(NNPC) and the middlemen. The study is
only based on petrol alone and not for kerosene or gas- generally.
1.7
LIMITATION OF STUDY
The research work is limited to fuel
scarcity in Nigeria with a case study of Enugu metropolis. This study was carried out purely as an
academic exercise and therefore could neither receive any financial support
form the government or any private enterprise.
The limited financial resources of the researcher is thus a major
handicap and thereby resulted in limiting the study only to Enugu metropolis.
Time factor also proved a major constraint.
1.8 DEFINITION OF TERMS
Economic – Punishment of
another country by reducing or stopping
trade
with it.
Effect – Change
produced by a action or cause
Fuel – Mineral
resources that provide nuclear or internal energy
requirement.
Scarcity – Something not
been enough, that is difficult to obtain and
much less then is needed.
Depot – A place where fuel
or oil is being store. Or A warehouse
of
anything.
Middlemen – Trader who passes
goods form the producers or form
place
where they are produce to the final consumer or
final buyer.