Retail Marketing Of Imported Petroleum Products: Evidence From The Downstream Petroleum Sector Of The Gambia

Abstract

The downstream petroleum sector is a key contributor to the Gambian economy with the absence of upstream petroleum exploration. The growth of the industry is highly dependent on ensuring that imported refinery petroleum products are distributed consistently and timely to consumers through an effective and efficient supply chain system as well as adopting innovative marketing programs. This is the ideal situation yearned for by stakeholders of the sector. To this effect, this research aims to explore the perspectives of retail petroleum marketing as well as challenges of petroleum import, storage and sales in the Gambia’s downstream petroleum sector. A qualitative method was adopted for the study through in-depth interviews in a semi-questionnaire format. The study discovered that OMCs downstream marketing strategies, programs and activities shifted from undifferentiated commodity imported refinery products marketing (old/previous marketing scenario) to branded value added services differentiated petroleum products (present marketing scenario) marketing owing to increase in both downstream energy market liberalization and market competition. The study also revealed that industry players face many challenges ranging from inadequate legislation, government interference, limited fuel terminal tanks, supply chain and other operational difficulties, high import duties and lack of subsidy on imported petroleum products. The study recommends that OMCs should develop and implement marketing strategies, programs and activities in line with product differentiation, branding and value added services. This research equally recommend that the stakeholders in the industry should work on the amendments of downstream petroleum legislation, expand the fuel terminal tank storage facility, adopt and enforce national downstream petroleum quality standard in the daily operations and work towards realizing full deregulation in the sector.