Role of Government Economic Regulations on Petroleum Supply Chain Management

Abstract

The study sought to assess the role of government economic regulations on petroleum supply chain management by surveying oil marketing companies in Kenya. The researchers used mixed research design. A field survey was carried out while purposive sampling was used to select 180 respondents from thirsty six (36) oil marketing companies located in Nairobi city involved in importation and marketing of oil products in Kenya. Primary data was collected through a questionnaire. Data was quantitatively analyzed using statistical package for social scientists (SPSS) for descriptive statistics and inferential while Analysis of Moment Structure Software (AMOS) was used for structural equation modeling. The study findings indicate that there was a positive relationship (regression weight = 0.47) between government economic regulations and Petroleum Supply Chain Management. The researchers therefore recommend implementation of government economic regulations by OMCs and ERC to be proactive to ensure fully compliance. There is also need for participation of all stakeholders in the development of policies that will ensure sustainable petroleum supply chain management. It is expected that the study will be of great importance to the management of oil marketing companies, policy makers, suppliers, consumers and the government. These are major stakeholders in the petroleum downstream sector.