Factors Influencing the Demand for Petroleum Fuel in Uganda: A Case Study of City Oil Bombo Road Branch
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The study examined the factors influencing fuel prices in Uganda taking a case study of City Oil Bombo Road Branch. The study was conducted with the specific objectives to identify the economic factors influencing the demand of fuel, to identify the social factors influencing the demand of fuel and to identify strategies that can be adopted to stabilize fuel prices. The study adopted a cross sectional design were data was collected from each respondent at a time. This type of design was cost effective, saved time and more information was collected in a relatively short period of time and it also allowed data to be collected at one point in time from different individuals. The findings of the study indicated that the most significant economic factors influencing fuel prices are the influence of travel seasons like festive season, improved vehicle fuel efficiency, exploration and production costs influences the prices and demand for fuel, strong economic growth and industrial production boosts the demand for petroleum fuel, economic growth and industrialization also results in higher personal incomes and urbanization which leads to higher vehicle ownership, growing economic activity and vehicle ownership in the country increase fuel demand, the rate of supply of fuel by oil producing nation’s impact on the demand for fuel and the global economic crisis influences the demand for fuel, the most significant social - political factors influencing fuel prices are the political stability, use of less fuel consumption cars in the community, family size affects the demand and rate of fuel consumption and household income of a family which impacts on fuel consumption behaviors. Furthermore, the most significant strategies that can be adopted to stabilize fuel prices as reducing unnecessary idling, implementing eco-driving training programs to specific achieve driving behaviors that can improve fuel economy and reduce operating expenses and adopt new technology to optimize fuel efficiency. The researcher recommended that the ministry of transport to increase on the size of most roads reaching different parts of the country to curb the problem of traffic congestion which result into high fuel prices, sensitize the public about the dangers of using vehicles with high fuel consuming rate and adoption of modern technology in the transport sector that can help to reduce on fuel consumption such as using telematics and GPS route optimization products and training of eco-driving skills to vehicle drivers which are all aimed at reducing on fuel consumption and stabilizing fuel prices.