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

Clara Msimuko and Harrison Daka
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Clara Msimuko: University of Zambia
Harrison Daka: School of Education, University of Zambia

African Journal of Commercial Studies, 2026, vol. 7, issue 2

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

Keywords: Fuel Price Volatility; Cross-Border Trade; Operational Costs; SME Performance (search for similar items in EconPapers)
JEL-codes: F14 L26 Q41 (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:cwk:ajocsk:2026-54

DOI: 10.59413/ajocs/v7.i2.36

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