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Strategies Employed by Cross-Border Traders to Mitigate the Adverse Effects of Fuel Price Volatility

Author

Listed:
  • Msimuko, Clara

    (University of Zambia)

  • Daka, Harrison

    (School of Education, University of Zambia)

Abstract

Fuel price volatility represents a major economic challenge for transport-dependent enterprises in developing economies. This study explores strategies employed by cross-border traders to mitigate the adverse effects of fuel price volatility. The study employed a mixed-methods approach using a concurrent triangulation design, combining quantitative data from structured questionnaires administered to 101 traders with qualitative interviews to capture experiential insights. Quantitative findings reveal that fuel price fluctuations significantly increase operational costs and reduce profitability. Approximately 68% of respondents reported that fuel price changes have a very significant effect on transportation costs, while fuel-related expenses accounted for about 10–20% of total operational costs for most traders. Regression analysis confirmed a strong relationship between fuel price fluctuations and trader performance, with fuel price volatility significantly increasing operational costs (β = 0.72, p

Suggested Citation

  • Msimuko, Clara & Daka, Harrison, 2026. "Strategies Employed by Cross-Border Traders to Mitigate the Adverse Effects of Fuel Price Volatility," African Journal of Commercial Studies, African Journal of Commercial Studies, vol. 7(2).
    • Handle: RePEc:cwk:ajocsk:2026-54
    DOI: 10.59413/ajocs/v7.i2.36
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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