• the Country's anticipated economic growth with the corresponding increase in consumption of fuels and lubricants;
• the government's support for the establishment of local oil companies; and
• the removal of unfavorable pre-conditions.

In establishing the company, the owners have committed themselves to strengthen the managerial and technical capability of the company by employing highly qualified managerial and technical personnel as well as by introducing systems that enable the company to efficiently and effectively handle its operation.

To attain the above objectives the strategies to be followed will include providing efficient and reliable customer services, utilizing modern distribution and service facilities, strengthening the marketing wing of the company, introducing productivity improvement schemes, introducing a computer-aided management information system, establishing standards for enhanced quality of services.

The Company is engaged in the business  of distribution of petroleum products. The company will focus on distribution of petrol, Kerosene, gas oil, bitumen, jet fuel, LPG and  lubricants. In order to meet its sales targets, the company has planned to cerate a distribution network of 50 fuel stations; 10 owned by the company and 40 by dealers-in the first two years of is operation. The principal shareholders of YBP are transport companies which have possession of more than 2500 fleets. When the company meets its target,  i.e. when it operates to its full capacity by constructing the intended  fuel stations in all parts of the country , the shareholders will be the  prime users (customers) of YBP's products. This will help YBP capture 10-15% of its market share with in  short period; that in turn may result  to secure more than 8 million Birr self-generated margin annually.

Mission Statement
The mission of YBP is to:

• contribute to the development of the country by providing quality and efficient petroleum products distribution services;
• provide efficient, high quality value adding services combined with the highest ethical, safety and environmental standards locally;
• bring the distribution services of petroleum products to the international standard;
• strive to operate at all times in a responsible manner which means fair and honest treatment of all those with whom the company deals, including customers, officials, employees and the general public; and
• provide conducive working atmosphere and opportunity for creativity and growth for employees of the company; to encourage each employee to develop his abilities to his fullest capacity.

Objectives
The specific objectives of the company are to:

• provide to the customers of petroleum products distribution services that are to the standards attained by well-rated countries;
• support the development and growth of the national economy through the establishment of efficient and responsible distribution network for petroleum products;
• capture 10% to 15% market share of the petroleum distribution market, in the first two years;
• increase the distribution network of the company through rational use of resources and introduction of modern and efficient operation systems;
• provide stable employment to its workers; and
• generate a return on investment that will allow a reasonable dividend to the shareholders as well as ensure continued growth of the company.
  Management and organization:

The operation of the Company is organized under four main departments reporting to the General Manager. The departments are Operations, Retail, Commercial, Administration and Finance. The company has been employing qualified and experienced managerial and technical personnel to ensure its effectiveness and efficiency. Currently, there are 25 employees, and this number is expected to exceed 50 by the end of year 2007.

The Products

The petroleum products distributed by the company are mainly intended to focus on the transport sector and consumers. Now according to its plan, YBP dispenses the following products to its esteemed customers:

• Petrol (Regular Benzene)
• Kerosene
• Gas Oil (Diesel Oil)
• Furnace oil
• Lubricants and greases

With the exception of LPG, bitumen products, and lubricants (which are not under the direct control of the government), the Ethiopian Petroleum Enterprise carries out the procurement the products through competitive international tenders and supply to all oil companies locally.

Lubricants and Greases:

Lubricants and greases are supplied in partnership with British Petroleum (BP). BP is one of the largest top three oil companies in the world. YBP has made an arrangement with BP and imports BP lubricants and greases with its customers in mind. BP lubricants and greases are the best products available in the market and for sure exceed YBP customers’ expectations.

Special Projects:  Ethanol-Gasoline Blended Fuel Project

Ethiopia currently has three sugar plants and has undertaken a project study for the establishment of additional one. However, it is only one of its plants, Finchaa Sugar Factory, which has Ethanol manufacturing plant with an annual production capacity of 8 million liters. The plant was established with the objective of manufacturing Ethanol to be used as a blended automobile fuel with Gasoline. At present, all the existing sugar factories are also undergoing expansion programs including Ethanol production. The country's annual production capacity is thus expected to be 43 million liters.

The Government of Ethiopia is looking for alternative sources of energy in order to reduce dependence on imported oil. One of the innovative methods of increasing fuel energy availability in the country is through use of Ethanol blends.

It is in-line with the above facts that YBP took the initiative and has decided to undertake detailed feasibility study on Ethanol-gasoline blended fuel project. The principal objective of the company is to be a pioneer in the country by introducing marketing of blended gasoline with locally manufactured Ethanol.

The output of the feasibility study indicates that the project is viable and YBP is in the process of pushing for implementation.

Besides undertaking the feasibility study, YBP in collaboration with Ethiopian Petroleum Enterprise and Finchaa Sugar Factory made an industrial visit to Brazil. The main objective of the visit was to study in detail the vast experience of Brazil in Ethanol-gasoline blends as automotive fuel. The visit was highly successful. When the project is implemented, significant benefits are expected to accrue to the consumers, the Country and environment.

Fuel Stations: In order to meet its sales targets, YBP has planned to create a distribution network of 50 fuel stations in the first two years of its operation. Currently, 23 stations across the country are operational.

YBPs’ fuel stations are generally composed of the following three categories:

• Truck Stations,
• Service Stations, and
• Filling Stations
  
  

Truck stations are big retail outlets with the capacity and facility to supply fuel and services, such as washing and greasing services, to trucks. They are the largest of the three categories listed above and retail all the four products (petrol, kerosene, gas oil, and lubricants). They are mainly located at main roads that serve as inter-city link.

Service stations are medium size outlets, their main clientele being small and medium size vehicles. They handle all the products indicated above. They are relatively larger than filling stations and are mostly located in areas of cities and towns where there is heavy transport traffic.

Filling stations are the smallest of the three categories and are not intended to supply fuel to trucks and other large vehicles