Profit E-Magazine Issue 169

Page 28

How do

petrol pumps

make money?

After all of the hullabaloo surrounding the increase in margins, how does the petrol pump business model even work?

28

I

By Ariba Shahid f you’ve been to a petrol pump in Pakistan chances are that you’ve seen a lad working at the pump holding a large wad of cash. As a kid you probably thought that the guy is rich, as an adult you come to realize, the guy probably earns the equivalent of 5 litres of fuel (at current prices) in a day – basically peanuts. But this story isn’t about unfair wages, it has more to do with how fuel pumps earn money.


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