RVHS_H2_ECON_P1

This document consists of 8 printed pages. [Turn over ECONOMICS 9732/01 Paper 1 Case Study 12 September 2011 2 hour 15 minutes Additional Materials: Answer Paper READ THESE INSTRUCTIONS FIRST Write your index number and name on all the work you hand in. Write in dark blue or black pen on both sides of the paper. You may use a soft pencil for any diagrams, graphs or rough working. Do not use staples, paper clips, highlighters, glue or correction fluid. Answer all questions. At the end of the examination, fasten your work securely together. Answers for Question 1 and 2 are to be handed in separately. Start Question 2 on a new sheet of paper. The number of marks is given in brackets [ ] at the end of each question or part question. RIVER VALLEY HIGH SCHOOL YEAR 6 Preliminary Examination in preparation for General Certificate of Education Advanced Level Higher 2

2 © RVHS 2011 9732/01 Answer all questions. Question 1 Developments affecting the Retail Petrol Market Table 1: Number of Petrol Stations in Singapore (as of Dec 2010) Player Number of Petrol Stations ExxonMobil (Esso) 65 Shell 63 SPC 38 Chevron (Caltex) 33 Total 199 Source: Competition Commission of Singapore Extract 1: Just one lone petrol station in Punggol One is a lonely number, and it is the reason motorists in Punggol are being driven mad. The new town has just one petrol station and long, snaking queues are common, especially during the weekends. The Singapore Petroleum Centre (SPC) station caters to 82,000 residents. Neighbouring new town Sengkang has three petrol stations. On busy days, as many as 10 cars line the road leading up to it, despite there being no huge discounts. When contacted, the Urban Redevelopment Authority (URA) said land is set aside for petrol stations in new towns. The release of sites for tender depends on factors such as the growth and size of the new town. SPC secured the 30-year Punggol site three years ago for $8.5 million. Land premiums paid for the retail petrol sites are generally high because of site scarcity. Prices of sites may differ because of location of site as well as the traffic volume in the area. Petrol retailers with better financial capabilities are more able to seek out premium sites with high car traffic. The URA said that while demand is a key factor, there are some areas, such as densely built-up Orchard Road, which are simply no-go zones because of "security and technical requirements". In all, there are about 200 petrol stations in Singapore. Areas like Serangoon and Bukit Timah boast at least three stations in a single kilometre stretch. Given the mobility of vehicle traffic, a petrol retailer needs a critical number of petrol stations, approximately 30 stations, located throughout Singapore to be viable. Source: Straits Times, 30 May 2010

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