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Pakistan State Oil Company Limited (PSO) - formed in the public sector on December 30, 1976 as a result of the amalgamation of three private sector companies - has over the years been the largest oil marketing company in Pakistan with an FY 2006 turnover of US $5.8 billion.
The company enjoyed over 77 percent share in Black Oil and 57 percent White Oil market on June 30th, 2006. PSO is a blue chip organisation with market capitalisation of around Rs 53 billion (US $0.9 billion), contributing US $975 million to the national exchequer in financial year 2006. Its earnings over the last five years have more than doubled from Rs 3.2 billion to Rs 7.5 billion, maximising shareholder value.
With retail coverage of over 3,700 outlets representing 66% participation in total industry network, PSO is engaged in import, storage, distribution and marketing of various POL products, including Motor Gasoline, HSD, Fuel Oil, Jet Fuel, Kerosene, LPG, CNG and petrochemicals. The company supplies around 4.9 million tons of retail fuels ie Motor Gasoline and Diesel and serves 2.8 million customers on daily basis.
Supported by well-established infrastructure built at par with international standards, comprising around 860,000 MT storage facilities (representing almost 81% of total storage in the country), PSO retains an edge over its competitors in terms of economies of scale and cost-effective operations.
The company's LPG business unit delivers cheap and environment-friendly fuel to low-income households and rural areas. The Agency Trade unit delivers Kerosene, Light Diesel Oil and lubricants to end-users via 500 distributors appointed all over Pakistan.
Along side its retail business, PSO also caters to the fuel demand of industrial consumers that include power generation, railways, sugar, textile, steel mills, etc. The company has also been meeting the fuel needs of defence of the nation and maintains prompt supplies to armed forces throughout the length and the breadth of the country.
PSO remains the only company in Pakistan whose turnaround and performance is cited in various case studies, both locally and internationally. The company is a member of the World Economic Forum (WEF) and the World Business Council for Sustainable Development (WBCSD).

Copyright Business Recorder, 2007

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