Exploring the Structure and Performance of Petroleum Retail Outlets in Pakistan

Omer Siddique () and Hanzla Jalil
Additional contact information
Hanzla Jalil: Pakistan Institute of Development Economics, Islamabad.

The Pakistan Development Review, 2018, vol. 57, issue 2, 223-247

Abstract: The petroleum retail industry is one of the least researched industries in Pakistan due to, perhaps, unavailability of the relevant data. This paper aims to fill this gap. Specifically, the present paper examines the structure and performance of petrol pumps in Pakistan, using primary survey data. Analysis of the data reveals that operating a petrol pump is a profitable venture and both location and non-locational variables are important in contributing to the profitability of a petrol pump. The exploratory analysis shows that the petrol pumps in urban areas and those on highways have higher sales, indicating that the geographical location of a petrol pump is important in explaining a petrol pump’s performance. According to the regression results, as the size of a petrol pump increases, its profitability increases and there is a non-linear relation between the distance variable and profitability of a petrol pump. The non-linearity implies that there exists optimal distance between two petrol pumps that maximises profits. This optimal distance is shorter for urban and non-highway petrol pumps, compared with rural and highway petrol pumps.

Keywords: Cost; Retail Business; Firm Location; Petrol Pumps (search for similar items in EconPapers)
JEL-codes: D24 L81 R3 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.pide.org.pk/pdf/PDR/2018/Volume2/223-247.pdf (application/pdf)

Related works:
Working Paper: Exploring the Structure and Performance of Petroleum Retail Outlets in Pakistan (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pid:journl:v:57:y:2018:i:2:p:223-247

Access Statistics for this article

More articles in The Pakistan Development Review from Pakistan Institute of Development Economics Contact information at EDIRC.
Bibliographic data for series maintained by Khurram Iqbal ().