Assessing Post COVID-19 Competition and Profitability in the Ugandan Downstream Oil Sector a Case Study of Stabex Petrol Stations in Kampala District
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Date
2024-04-19
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Uganda Christian University
Abstract
The purpose of this study was to assess the post Covid19 pandemic competition and profitability
of Uganda’s downstream oil sector with a case study of Stabex International Ltd in Kampala
district. The study was guided by three objectives which were; to analyze the current
competitive landscape of the downstream oil sector in Uganda, to evaluate the impact of
competition on profitability margins for companies within this sector and to identify the key
drivers of competition and their effects on operational efficiency and market share distribution
among downstream oil companies in Uganda.
The study assessed a population of 35 from which a sample of 32 respondents were gotten. The
cross-sectional design was used because cross-sectional studies are generally quick, easy, and
cheap to conduct because limited time is spent in the field. With the cross-sectional design, the
researcher was able to collect appropriate data quickly and cheaply. Closed ended questionnaires
were utilized to collect data and analyzed using SPSS in form of percentages.
The findings showed that a large majority agreed that there was a rise in the competition levels
after restrictions due to the pandemic were scrapped allowing free operation of businesses. The
findings showed that there increasing entry of new firms in the sector which opened roon for
huge competition with reduced profits. The findings also showed that the market share was in
equivalently divided the major dominants like TOTALEnergies and VIVO Energy taking the
biggest market share leaving multiple players to compete in the smaller niches in the market. .
The study recommends Stabex International Ltd and other petrol retailers should consistently
provide high service levels to keep loyal customers and also ensure that monthly customer
satisfaction surveys are conducted and the government should consider reducing on the petrol
retailing taxes to keep them operative and reduce on their closure due to the high operational
costs.
Like any other research, this research is not exhaustive and therefore, further research is needed
to research whether the results hold for other fuel stations in other Cities and districts. Other fuel
stations might have similarities and therefore this research could also be applied in those fuel
stations.