Effects Of Illegal Refilling or Counterfeiting of Liquidated Petroleum Gas on the Sales of Oil Marketing Companies In Uganda:

Abstract

Ola Energy Uganda is facing the problem of LPGas illegal refilling by illegal refillers without authorization. The purpose of this research has been to investigate the effects of illegal refilling or counterfeiting of LPGas on the sales of Ola Energy Uganda Limited. Using the designed questionnaires and interviews for Ola Energy staff, customers and distributors, the study found out that illegal refilling affects Ola energy LPG sales when illegal refillers use or hold Ola LPGas cylinders without authorization and use them for their own business hence leading to loss of revenue for Ola Energy, poor quality and low quantity product in the market, brand and cylinder damage, price suffocation in the market and affects 6kg and 13kg cylinders. This is due inactive policies in Uganda, access to LPGas and cylinders by illegal refillers, no visibility for OEUG for both brand and distributors in the market, access to OEUG seals by illegal refillers. The illegal refillers illegally refills Ola LPGas by decanting big LPGas cylinders (40/45kg) into small cylinders (6kg and 13kg), installed LPG tank with filling systems, repainted of cylinders with colors for brand to counterfeited. Therefore, its recommended that the Ola Energy should improve cylinder filling technology, adopt intellectual property controls, information control, put up education programs, increase marketing budget, put up monitoring systems for illegal refillers, improve cylinder and valve designs, implement mobile cylinder weighing, properly communicate prices and lastly implement anti –counterfeiting programs.