Regulatory Compliance, Operational Efficiency and Financial Performance of Fuel Stations In Mbarara City.

Abstract

The study examined the relationship between Regulatory compliance, Operational Efficiency and Financial Performance of Fuel Stations in Mbarara City Uganda. The objectives of the study were to: determine the relationship of regulatory compliance on the financial performance of fuel stations in Mbarara city and to determine the relationship of operational efficiency on financial performance of fuel stations in Mbarara city. The study employed a cross sectional survey and descriptive designs where data were collected from 85 respondents through questionnaire and interviews. The findings indicate a statistically significant positive relationship between regulatory compliance and the financial performance of fuel stations in Mbarara City. The Pearson correlation coefficient (r = 0.542, p < .05) reveals that higher levels of regulatory compliance are associated with improved financial outcomes. This implies that fuel stations adhering to regulatory standards, including safety, environmental, and operational regulations, are more likely to experience profitability, customer trust, and sustained business operations. Based on regression analysis results suggest that both regulatory compliance and operational efficiency significantly predict financial performance. Together, these variables account for a considerable proportion of the variance in financial outcomes among fuel stations in Mbarara City