Saudi companies involved in the gas station sector have announced that their profit margins will not change with respect to selling fuel.
One of these companies pointed out that the difference between the cost of selling and purchase will remain at the levels of 9 halalas per liter.
This came after the Ministry of Energy, Industry and Mineral Resources had announced Sunday that it would adjust the prices of domestic oil derivatives.
For its part, Saudi Automotive Services Company (SASCO) said in a statement that “with reference to the decree issued by the Ministry of Energy, Industry and Mineral Resources dated Monday December 31, 2017 regarding the increment of the fuel prices, the company is pleased to announce to its distinguished shareholders that by studying the financial impact resulting from this increment, it was found that certain items of the company's income statement will be affected.”
The effects are represented in increased operating revenues, SASCO said.
It explained that the selling price of gasoline 91 increased from 75 halalas /liter to 1.37 SAR /litter (Including VAT) while purchasing price increased from 66 halalas /liter to 1.28 SAR /litter (Including VAT) causing no change in the gross profit, which is 9 halalas /liter.
The selling price of gasoline 95 increased from 90 halalas /liter to 2.04 SAR /liter (Including VAT) while purchasing price increased from 81 halalas /liter to 1.95 SAR /litter (Including VAT), causing no change in the gross profit (9 halalas /liter), the company said.
It also explained that the selling price of diesel increased from 45 halalas /liter to 47 halalas /liter (Including VAT).
“It is worth to mention that the financial impact of this increment will reflect on the company's financial statements starting from the first quarter of 2018 while the actual value of this impact cannot be determined at this moment.”
SASCO assured to meet these new changes in accordance with the directions of the board of directors.
These developments took place after the Saudi Ministry of Energy, Industry and Mineral Resources announced that the new prices of oil derivatives would apply to the domestic market as of Sunday midnight.
Recalling the statement of December 12, the Ministry said the plan to correct the prices of oil derivatives aims to reduce the rapid growth in domestic consumption.
The new prices, set forth in statement carried by the SPA, including VAT, were as follows; Gasoline 91 - 1.37 Saudi riyals per liter (SR /L); Gasoline 95 SR /L 2.04; Diesel for industry and utilities SR /L 0.378, Diesel for transport (unchanged) SR /L 0.47 and Kerosene (unchanged) SR /L 0.64.
The regulatory authorities will continue monitoring the markets to ensure that prices are applied and that supplies are not interrupted, according to the statement.
Legal penalties will be applied to whoever raises prices before the stated time or stops providing products, it warned.
