Oil Business and Retail Business

Oil Business and Retail Business
Oil Business

Fuel products of the Company and subsidiaries can be divided into 2 main types as follows:

  1. Diesel is high-speed diesel B7 (hereinafter called “diesel fuel”)
  2. Benzene, which comprises octane-95 benzene, gasohol 95, gasohol 91 and gasohol E20 (hereinafter called “benzene fuel”)

The Company mostly sells diesel fuel to direct and indirect consumers who use vehicles for commercial purposes. For this reason, the volume of fuel sold is in line with the type of cars registered in Thailand, which are largely diesel-powered. However, the Company is expanding its service stations more in Bangkok and Vicinity areas, which also leads to a rise in benzene sales.

The Company operates fuel oil trading business through PT service stations in two types: service stations owned by the Company (Company Owned Company Operated or "COCO Service Station") and service stations owned by the operator who has the right from the Company (Dealer Owned Dealer Operated or "DODO Service Stations"). The DODO service stations shall buy oil from the Company and subsidiaries that are oil traders under Section 10. In this regard, the Company will provide advice and assistance to these oil distributors, such as station design, investment, and management. The proportion of sales of gasoline and diesel in each service station will vary according to the needs of the target customers who are in the vicinity of each gas station.

In addition, the Company and subsidiaries also operates fuel traders under Section 10 of fuel wholesaling to other fuel traders and industrial operators. They are another customer group with huge volume of fuel purchase and for numerous purposes, such as reselling fuel to other fuel traders, selling fuel to individual users, and using such fuel in the production process in factories.

Retail Business

In addition to oil trader through service stations, PTC also invests in and operates convenience store business, Max Mart, at PT COCO and DODO service stations. The Company selects appropriate stations to invest in by considering

  1. Number of users of station services and sales volume at the stations.
  2. Location of service stations at which the stores will be situated, considering the nearby residential communities, business areas and significant government offices, as well as roadways that link to the service stations.
  3. Size of PT service stations, either with a free space large enough for constructing a convenience store, or with an already-built convenience store.

The Company has adjusted the direction of convenience store management to increase the efficiency of operations and improve the satisfaction of customers’ needs. The renovation, appearance development, and equipment improvement, and increase of product variety of convenience store from Max Mart has been conducted to increase the store sales potential. By the end of 2022, the total number of Max Mart is 309 branches. The Company targets to expand number of Max Mart to more PT stations in order to be more comprehensive and meet customer demand.