KARACHI: Despite the increasing influx of smuggled Iranian oil, oil marketing companies (OMCs) in Pakistan are expanding their retail networks. Pakistan State Oil (PSO) has added 37 new retail outlets in the first nine months of FY24, bringing its total to 3,555. However, PSO’s 9MFY24 report did not address the issue of fuel smuggling, which has impacted diesel and other fuel sales according to other refiners and OMCs.
Attock Petroleum Ltd (APL) has strategically invested in key locations, commissioning new service areas on motorways M-4 and M-14. APL’s flagship outlet on Jinnah Avenue, Islamabad, is nearing completion, with a total of 787 retail outlets as of March 31, 2024.
Shell Pakistan Limited (SPL) highlighted the smuggling of 4,000 tonnes of fuel daily, posing a threat to the oil industry and government revenue. SPL has over 500 stations and commissioned five new sites in Q1 2024.
Gas and Oil Pakistan Limited (GO) now has 1,200 retail outlets, up from 1,000 in 2022. BE Energy has built 406 outlets over 12 years, with 10 more under construction.
Abdul Sami Khan, Chairman of the Pakistan Petroleum Dealers Association (PPDA), expressed dissatisfaction with the rapid opening of new fuel pumps, including on former CNG stations. OGRA has granted permissions for these new pumps.
In response to a proposal for mobile fuel distribution units, the Ministry of Energy has considered a limited scope for diesel supply in agricultural and remote areas, emphasizing safety concerns. Sami Khan warned that mobile units could undercut fixed retail prices, leading to marketing issues and cannibalization of existing businesses.
Story by Aamir Shafaat Khan
