I have tried figuring this out,could the company still be holding stocks procured when crude was cheaper?,if so does the company have enough storage facilities for the same to last this long?.Or anticipating higher prices would they have got into some form of contracts with their sources when prices were lower?.
One thing about KKs management,they will not sell at a loss!

WIth the KK card, you prepay for the fuel. This means that they will eliminate alot of bank costs as they can afford to pay cash as well as utilise your 'free' money to run their operations even to the extent of having some good FDs and play with forex market. They can then pass on some of the benefits to you in the form of price cuts which your funds have generated. They also could be having alot of fuel bought at cheaper prices earlier as not many people used to fuel at KK stations before the regulation kicked in. Infact, KK was for the big companies and govt to buy on credit and so their pump prices were the highest in the land. What they are doing is creating a loyal market of fellows who pay for their fuel in advance!!! Whatever the costs now can be termed as marketing costs coz once you start prepaying your fuel in the name of planning, you are in. There is nothing wrong with that though.