Exploring the Structure and Performance of Petroleum Retail Outlets in Pakistan

Omer Siddique (), Ahmed Qasim and Hafiz Hanzla Jalil
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Hafiz Hanzla Jalil: Pakistan Institute of Development Economics, Islamabad

No 2016:145, PIDE-Working Papers from Pakistan Institute of Development Economics

Abstract: Retail petroleum business is an important sector of any economy, but the analysis of its structure and performance has hitherto been missing in Pakistan. This paper is first such attempt using primary survey data for Pakistan. The results obtained from the petrol pumps included in our sample indicate that the petrol pumps make handsome profits. The petrol pumps in urban regions as well as those on highways have higher sales and earn higher gross profits, indicating that location of a petrol pump LV DQLPSRUWDQW GHWHUPLQDQW RI D SHWURO SXPS¶V sales performance. Another locational variable that is statistically significant in contributing to higher sales and gross profits is the distance of the petrol pump from the nearest petrol pump. Size is one of the most important variables having a positive impact on the total sale volumes and gross profits of petrol pumps. As far as spatial differentiation is concerned, there is a non-linear relationship between the performance of the petrol pumps and the distance from their competitors.

Keywords: Production; Cost; Retail Business; Firm Location (search for similar items in EconPapers)
JEL-codes: D24 L81 R30 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2016
New Economics Papers: this item is included in nep-eff and nep-ure
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https://www.pide.org.pk/pdf/Working%20Paper/WorkingPaper-145.pdf First Version, 2016 (application/pdf)

Related works:
Journal Article: Exploring the Structure and Performance of Petroleum Retail Outlets in Pakistan (2018)
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