Aldrees, SASCO say profit margins of qualified fuel stations, service centers hiked

Saudi Arabia’s Aldrees Petroleum and Transport Services Co. and Saudi Automotive Services Co. (SASCO) have received today 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).

Petrol profit margins were hiked to SAR 0.15 from SAR 0.09 per liter, and diesel margins to SAR 0.05 from SAR 0.035 per liter, both companies said in a bourse statement, citing a notice from the National committee for Gas Companies.

Retail prices for end consumers will not be affected by the new decision, the statements added.

The relevant financial impact cannot be determined at present, as no more information was mentioned about the effective date of the new profit margins.

In a letter to the Council of Saudi Chambers, the Ministry of Energy said state-owned Saudi Aramco will apply the new profit margins only to qualified petrol stations and service centers.

The energy ministry will coordinate with MOMRA to adjust the list of qualified firms. The new profit margins will apply to companies, which will be qualified going forward, one month after receiving their qualification.

Meanwhile, the new profit margins will not be granted to the firms, from which the facility qualification was withdrawn by MOMRA.

The financial impact from the new margins is likely to reflect positively on the company’s financial results starting from the date upon which the new decision will take effect, the statements added.

However, it is currently difficult to estimate the exact financial impact, as it depends on actual sales of petroleum products and the date upon which the new decision will take effect.