Saudi Automotive Services Co.’s (SASCO) decision to raise the profit margins of fuel stations will help improve the company’s earnings, CEO Riyadh Al-Malik told CNBC Arabia.
The step will have a positive impact on the firm’s growth, as well as adding new sites and enhancing the service in this sector, he said.
According to data compiled by Argaam, SASCO received earlier this month the energy ministry's approval to increase profit margins of fuel stations and other service centers.
Petrol profit margins were hiked to SAR 0.15 from SAR 0.09 per liter, and diesel margins to SAR 0.05 from SAR 0.035 per liter.
Al-Malik also said that SASCO owns 200 fuel stations in the Saudi market, of which 180 stations are currently operational, while 20 fuel stations are still under-development and are expected to be fully functional before the end of this year.
The automotive firm has invested around SAR 800 million in buying and building fuel stations during the last period, he added.
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