The Chief Executive Officer of the National Petroleum Authority (NPA), Hassan Tampuli, at a press conference on Wednesday, gave a litany of reasons why the about ten taxes and
margins on fuel prices could not be taken off.
Not exact matches
The surge in
fuel prices was blamed
on, among other things, the multiple taxes and
margins slapped
on the products.
Without a distinctive brand identity, competitors are forced to battle
on price, robbing them of the profit
margin that
fuels future product and ecosystem development.
Playing devil's advocate,
fuel margins are at historical highs due in large part to the declining oil
price — as the oil
price comes down these operators do not pass
on the savings immediately which leads to over-earning
on the
fuel side.
So I think any potential contraction in
fuel margins,
on higher oil
prices, is relatively limited — particularly with only a little over a third (& falling) of Applegreen's gross profit now derived from
fuel.
One might, for example, trade oil futures as a hedge
on a position in transportation stocks; when oil
prices rise, trucking and airline companies suffer in the short term as their
margins get squeezed due to
fuel costs.
It has also published today its latest report
on prices which shows that the average dual
fuel bill now stands at # 1,345 and, following recent
price rises, estimated suppliers»
margins have peaked at around # 125 per year, but are likely to fall back next year.