re: Service Station Loss - Tax free Fuel?
Per the excerpt from DR1 news, 3/07/06 Retailers Not Buying Gasoline
[The retailers' association president Juan Ignacio Espaillat said they would sell the fuel they have in stock until they run out, because they cannot continue to operate with what they perceive as low profit rates. He explained that they took the decision as the Ministry of Industry and Commerce has not yet responded to the sector's basic problems despite having been granted a five-month period to do so. According to the business leader, tax-free fuel has reduced the sales of their service stations. In 2004 they sold 69,000 gallons per station whereas now they are only selling 47,000.]
How do service station sales decline, by having tax-free fuel? It seems to me that having tax-free fuel would increase the demand for fuel if anything. Is this article a misprint?
Per the excerpt from DR1 news, 3/07/06 Retailers Not Buying Gasoline
[The retailers' association president Juan Ignacio Espaillat said they would sell the fuel they have in stock until they run out, because they cannot continue to operate with what they perceive as low profit rates. He explained that they took the decision as the Ministry of Industry and Commerce has not yet responded to the sector's basic problems despite having been granted a five-month period to do so. According to the business leader, tax-free fuel has reduced the sales of their service stations. In 2004 they sold 69,000 gallons per station whereas now they are only selling 47,000.]
How do service station sales decline, by having tax-free fuel? It seems to me that having tax-free fuel would increase the demand for fuel if anything. Is this article a misprint?