Investigating the Factors Influencing Changes in Petrol Prices at Abaya Product Links in Gauteng, South Africa
DOI:
https://doi.org/10.51137/wrp.ijarbm.340Keywords:
Petrol Price Fluctuations, Supply Chain Operations, Transportation Costs, Procurement, Inventory ManagementAbstract
This study examines the impact of petrol price fluctuations on supply chain operations at Abaya Product Links, a logistics company in Gauteng, South Africa. Fuel costs make up a large share of logistics expenses, and their volatility creates operational, financial, and strategic challenges that affect supply chain continuity. The research aimed to identify factors driving petrol price changes, assess their effects on transportation, procurement, and inventory management, evaluate existing mitigation strategies, and propose recommendations to enhance resilience. A quantitative approach was used, with a structured questionnaire administered to 68 employees in logistics and supply chain functions. Results show that rising petrol prices reduce profit margins, disrupt transportation schedules, and require procurement and inventory adjustments. Mitigation strategies are inconsistently applied. Recommendations include staff education, technology adoption, policy engagement, and improved internal communication to strengthen operational resilience and sustain supply chain performance.
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