The Pakistan State oil (PSO) has substantially lost its market share in both black and white oils to its private sector competitors in first three quarters of the current calendar year. A company report on sales shows that PSO lost its market share to smaller oil companies, like Bosicor and even Baqri Trading, during last one year.
The report gives a comparison of its market shares vis-à-vis other oil companies operating in private sector. The report indicates that as on October 31, 2010 PSO's market share in motor gasoline stood at 49.5 percent, against 56 percent for the corresponding period of 2009. It shows over 6 percent loss in motor gasoline, which indicates strength of an upstream company in the market.
PSO also lost its market share in high speed diesel (HSD). The report shows that PSO share in HSD to market reduced from 57.2 percent to 55.5 percent. Likewise, PSO lost its market share in JPI by around one percent. PSO's share in JPI, according to the report as on October 31 2009 was 64.5 percent and it dropped to 63.1 percent on October 31, 2010.
PSO also could not maintain its market in black oil. It lost in both light diesel oil (LDO) and furnace oil. Its share in LDO dropped from 28.9 percent to 24.7 percent. In the case of furnace oil, PSO lost from 89 percent to 81.6 percent from October 2009 to October 2010. PSO had complete monopoly in black oil market till 2008. Other companies which entered into black oil market just one year back have shown growth in market share in both black and white oils.
In a clear contrast to PSO, upstream industry has shown growth as far as their market share is concerned. PSO's losing share to its competitors and that too to those which have comparatively very small infrastructure is an alarm bell for those who have been claiming to make PSO a model for its competitors.
Shell showed slight downward trend in its white oil market as its white oil share dropped from 21.2 percent in 2009 to 20.8 percent in 2010. However, it made a big leap forward in black oil sale. According to the report, Shell's share in black oil rose from 1.1 percent in 2009 to 6.4 percent by October 31 this year. Bosicor is showing robust growth both in white and black oils market share.
Its share in white oil increased from a mere 1.1 percent in 2009 to 3.2 percent and it also gained major portion in its market share in black oil. Sources said PSO management was hardly taking the issue of its losing share in market seriously. PSO is spending billions of rupees annually on its expansion plan which the report shows were hardly giving any result.
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