An Investigation of fuel shortages and their impact on operational performance: a case study of Petrozim Line (private) Limited

Abstract

The purpose of this study was to investigate the impact of fuel shortages on operational performance at Petrozim Line (Pvt) Ltd. Zimbabwe has continued to face the persistent problem of fuel shortages, thereby impacting on the operations of various organization’s dependent on a stable fuel supply. The study was aimed at identifying the reasons for fuel shortages, identifying the impact of these fuel shortages on operations and then to investigate the measures put in place by Petrozim Line (Pvt) Ltd to tackle these shortages as well as proposing solutions to overcome their impact. A mixed methodology research approach was adopted whereby qualitative and quantitative methods were combined. The data was collected from a total of 50 respondents compromising employees and managers working for various departments within the organization. Questionnaires and interviews were used as methods for data collection. The quantitative data was analyzed by use of frequencies, percentages, tables and graphs while the qualitative data were analyzed using thematic analysis. The findings indicated that fuel shortages had a significant impact on operational performance of Petrozim Line (Pvt) Ltd by causing service delays, increased operating costs and reduced efficiency as well as affecting the productivity of its employees and work flow management. It was also established that causes of fuel shortage were foreign currency shortages, delays in fuel import, inefficient supply chain and reliance on imports of fuel. While steps such as establishing fuel management systems and developing alternative sourcing strategies have been taken by the company there still appear to be gaps in the system and operational efficiency is continually affected by the shortages. In conclusion fuel shortages had a major impact on the operational performance of Petrozim Line (Pvt) Ltd and that strategic reserves, diversifying fuel sources, improving fuel planning and forecasting and an efficient supply chain were essential in ensuring that organizations maintained business continuity in this challenging environment. Investing in alternative energy and the development of contingency plans will improve organizational resilience.