Abstract:
The study questions the impact of the Liquid Fuels Empowerment Charter (LFEC) as an effective economic transformation tool in petroleum retailing. It assesses the extent of African retailersÕ awareness of empowerment policies, while understanding the decline of these retailers in the sector.
Based on the mixed theories which infused the Political Economy, Transitional and Knowledge Management, a qualitative study was followed. Twenty respondents were interviewed comprising 10 retailers and 10 stakeholders who are signatories to the LFEC.
Key findings point to the challenges African retailers have to overcome in the Petroleum sector. These being: funding models; over-geared loans; allocation of Ôdog sitesÕ over transient high-volume sites; unsupportive environment and insufficient training; prohibitive pricing practices; inflated goodwill in the absence of an industry standard; and antagonistic relationships with Multinational Oil Companies (MOCs).
The study has a number of implications. Policy implications require government to put in place mechanisms to ensure that transformational policies are implemented and monitored in the sector. Consequently, business implication suggests that the MOCs economic transformation efforts need to be encouraged to contribute meaningfully to the Petroleum sector ecosystem. The urgency for a national study to understanding the African retailersÕ decline merits further research to this limited geographical research.
