GREENVILLE, S.C., Sept. 2 /PRNewswire/ -- The Spinx Company, Inc. commits to operate at a Zero Profit Margin on all gasoline sales and merchandise sales from Monday, August 29, 2005 through Monday, September 12, 2005. The Spinx Company is taking this action to help absorb the dramatic increase in wholesale gasoline prices in the wake of Hurricane Katrina.
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 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 Company is taking a stand against such actions and vows not to profit from gasoline sales during the week of the hurricane disaster.
Company President, Stewart Spinks states, "We at The Spinx Company, 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, The Spinx Company will open financial records to independent auditors, Pope Smith Brown & King for a complete review. In the event that any net profits are found, The Spinx Company, will donate that amount to the local chapter of The American Red Cross designated for the hurricane disaster relief fund.
Stewart Spinks continues, "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."
Spinx Gasoline Supply:
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, The Spinx Company, Inc. replenishes approximately seventy percent of its stores with at least one tanker of gasoline. One tanker truck holds enough fuel to fill approximately 300 cars' gas 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 gas stations, depleting any available reserves. Within hours, Spinx was forced to close many gas pumps due to a lack of product. Spinx has continued to re-supply stations during the last few days with product at significantly higher cost that has been passed on to the customer.
Stewart Spinks summarizes, "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."