Impact Of Increase In Petroleum Product Price On Organizations' Profitability (A Case Study Of Pz Cusson Plc)

ABSTRACT

The research is on the impact of increase in petroleum product price increase on organization's profitability was carried out using PZ Cussion PLC Aba Brach as a case study. To determine the effect of petroleum product price increase on profit, capacity utilization, and product pricing of the company. Multiple regressions were used in testing the hypotheses. The secondary sources of data for 5 (five) years, which is the published accounts of company were also used. A finding from the study shows that, there is a negative relationship between petroleum product price and profitablity that is, there is a decrease in profitability as a result of petroleum prodcut price increase. To address the negative consequences of petroleum product price increase on companies' performance, it is recommended tha government should endeavor to subside the price of petroleum product to help industries in running of their business. There is need also to make available petroluem products so that local indistries can achieve effective production.