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Exploring the Structure and Performance of Petroleum Retail Outlets in Pakistan

Author

Listed:
  • Omer Siddique

    (Pakistan Institute of Development Economics, Islamabad)

  • Ahmed Waqar Qasim

    (Pakistan Institute of Development Economics, Islamabad)

  • Hafiz Hanzla Jalil

    (Pakistan Institute of Development Economics, Islamabad)

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.

Suggested Citation

  • Omer Siddique & Ahmed Waqar Qasim & Hafiz Hanzla Jalil, 2016. "Exploring the Structure and Performance of Petroleum Retail Outlets in Pakistan," PIDE-Working Papers 2016:145, Pakistan Institute of Development Economics.
    • Handle: RePEc:pid:wpaper:2016:145
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    References listed on IDEAS

    as
    1. Ministry of Finance, Government of India,, 2016. "Economic Survey 2015-16," OUP Catalogue, Oxford University Press, number 9780199469284, Decembrie.
    2. Schmidt, Charles G., 1983. "Location Decision-Making Within a Retail Corperation," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 13(1), pages 1-12.
    3. Janet S. Netz & Beck A. Taylor, 2002. "Maximum Or Minimum Differentiation? Location Patterns Of Retail Outlets," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 162-175, February.
    4. Patrick Biernacki & Dan Waldorf, 1981. "Snowball Sampling: Problems and Techniques of Chain Referral Sampling," Sociological Methods & Research, , vol. 10(2), pages 141-163, November.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Production; Cost; Retail Business; Firm Location;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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