SASCO announces start of fuel quantities from Aramco as per new profit margin

Saudi Automotive Services Company (SASCO) announced that effective today, Feb. 4, it started requesting fuel quantities from Aramco in accordance with the new profit margin.

In a statement to Tadawul, the company said that it has not obtained the mechanism of receiving the retroactive profit margin from Aramco, adding that both companies are working to finalize that.

The company expected the financial impact to start appearing in the Q1 2020 financial results. However, it added that its impact cannot be determined accurately due to its correlation with actual fuel sales.

The number of fuel stations in January 2020 stood at 201. During the same period, sales of gasoline 91 reached 126.57 million liters, gasoline 95 stood at 8.72 million liters and diesel was at 43.19 million liters.

The company will announce any development in this regard later on, the statement added.

On Oct. 1 2019, SASCO received the approval of the Ministry of Energy on increasing profit margins of fuel stations and other service centers, which are qualified by Ministry of Municipal and Rural Affairs (MOMRA), Argaam reported earlier.

The new profit margin will be 15 halalas for gasoline instead of 9 halalas per liter, and 5 halalas per liter of diesel instead of 3.5 halalas per liter.

The new retail prices at stations will not affect the end consumer, the statement also said.