Factors Determining Supply and Distribution of Gasoline and its Economic Impact in the case of Dire Dawa

This study was aimed at analyzing factors affecting gasoline supply and distribution and its economic impact in case of Dire Dawa. The data were obtained from primary source. The primary data for this study were collected from 386 gasoline used vehicle derivers, 25 Truck transporters,9 diesel distributer oil companies and 16 fuel dealers selected by using simple random sampling procedures. In this study the type of data collection tool was questionnaires and the methodology of the study used descriptive research. Moreover, to measure the relationships between variables of interest and to identify factors affecting supply and distribution of gasoline binary logit model was used. The result of regression model indicated that gasoline supply and distribution was positively and significantly affected by gasoline storage capacity of tanker and gasoline transporting system. And Black market of gasoline sales price, leadership structure of the company, gasoline supply, distribution and controlling policy and demand of gasoline are negatively and significantly affected gasoline supply and distribution. Thus, positive and significant effect of gasoline storage capacity of tanker and gasoline transporting system suggest policies aimed improving the amount and distribution of gasoline storage, increase capacity of storage, use modern gasoline storage and improving the current road quality, improving weak transporting services, constructing fuel pipeline and using modern fuel transporting system like train and pipeline. Thus, negative and significant effect of black market of gasoline sales price, leadership structure of the company, gasoline supply, distribution and controlling policy and demand of gasoline suggest policies aimed improving the current gasoline buying and selling regulation and leadership structure of the company and gasoline supply, distribution and controlling policy, preparing legal embrace for stray gasoline distribution and balancing number of gasoline useable vehicles with demand of gasoline, substitute modern and non-gasoline useable vehicles in the future are recommended to improve gasoline supplying and distribution development.