GREENVILLE, S.C. -- The Spinx Co. Inc. commits to operate at a zero profit margin on all gasoline sales and merchandise sales from Monday, Aug. 29, 2005, through Monday, Sept. 12, 2005. The Spinx Co. is taking this action to help absorb the dramatic increase in wholesale gasoline prices in the wake of Hurricane Katrina, the company said.
The temporary shutdown of the refineries and pipelines that provide the region with its gasoline, heating oil and truck diesel fuels were rendered inoperable due to the storm. Damage to this vital infrastructure has [image-nocss] left much of the North and Southeast regions without the supply needed to meet the surge of demand, resulting in astronomical prices that some believe to be driven by greed or opportunistic strategy. The Spinx Co. is taking a stand against such actions and vows not to profit from gasoline sales during the week of the hurricane disaster.
President Stewart Spinks said, We at The Spinx Co. Inc. are doing all we can to ensure our stores have the gasoline our customers need to conduct their daily lives in a community-centric and responsible manner even when profits must be foregone.
In order to validate the zero margin pledge for the week of this disaster, Spinx will open financial records to independent auditors, Pope Smith Brown & King, for a complete review. In the event that any net profits are found, Spinx will donate that amount to the local chapter of the American Red Cross designated for the hurricane disaster relief fund.
Stewart Spinks added, We want to thank our loyal customers for their on-going support and patronage in this difficult hour and wish to reassure them that we are committed to serving the people of SC for over 30 years.
Unlike many industries that periodically replenish inventories at a fixed cost, a motor fuel retailer must perpetually replenish inventories with products that have a constantly changing cost. On a typical business day, Spinx replenishes approximately 70% of its stores with at least one tanker of gasoline. One tanker truck holds enough fuel to fill approximately 300 cars' gasoline tanks and under normal circumstances. This delivery is enough to supply the store for the next 12-to-24-hour period depending upon local demand.
Many customers reacted to the news that fuel would be in short supply for the near future by creating a run at area stations, Spinx said, depleting any
available reserves. Within hours, Spinx was forced to close many gasoline pumps due to a lack of product. Spinx has continued to resupply stations during the last few days with product at significantly higher cost that has been passed on to the customer, it said.
We hope to be back to normal supply by mid-September, but until then, all of us need to conserve gasoline usage and resist the urge to hoard an already limited supply, said Spinks.Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.