Background of the company
Yetebaberut Beherawi Petroleum was established in May 2004. At present the capital has reached Birr 53 million. Yetebaberut Beherawi Petroleum is owned Completely by Ethiopian Nationals, thus the equity capital is 100% local and it is the only company of its kind in Ethiopia.
The major factors that motivated the establishment of the company are opportunities created for new entrants into the sub-sector of petroleum products distribution in the country. The major opportunities for engaging in the business of petroleum distribution are:
- 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.
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.