The Oil and Gas Regulatory Authority (OGRA) has decided to grant a permanent marketing license to Hascol Petroleum Limited (HPL), in place of its existing provisional marketing license.

“It is hereby informed that in exercise of powers conferred under Rule 35(3) of Pakistan Oil (Refining, Blending, Transportation, Storage and Marketing) Rules, 2016 the authority has decided, in principle, to grant license to HPL,” said OGRA in its letter, after HPL requested a change in status.

“This is a great milestone achieved by the company and its management during these challenging times,” said HPL in its filing to the bourse on Wednesday.

HPL enjoyed significant growth from 2014 till 2017 and became the largest oil marketing company in the private sector in terms of oil storages nationwide, but had a very tough 2019. The company’s market share fell from 12 percent in FY18 to 10 percent in FY19 to 7 percent in FY20.

In the last six months of 2019, the company’s market share in total POL products stood at 6 percent, more than half of what it was in the similar period a year before (13 percent from July-Dec 2018).

The company in 2019witnessed its revenues fell by 34 percent year-on-year, due to fluctuation in the international oil prices, market volatility, and local economic conditions coupled with the massive devaluation of Pakistani Rupee causing an increase in product cost.