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History & IntroductionThe history of Pakistan State Oil starts from mid-70s when the Government of Pakistan

amalgamated three OMCs: Esso Eastern, Pakistan National Oil (PNO) and Dawood

Petroleum as part of its reorganization plan. It is considered as one of the most

successful mergers in the history of Pakistan. The main objective of the Nationalization

of POL Giant was backed by the facilitation of the sensitive national issue of providing

fuel to Defense forces. Because, during the war of 1971, the nation suffered from the

problem that no fuel company was interested to provide fuel to the Armed forces at that

and the sensitivity of the nation was in very crucial condition.

The than Federal government decided to nationalize three petroleum companies along

with management control.

The company is the only public sector entity in Pakistan that has been competing

effectively with three multinationals companies which are supported technically by their

parent organization.

Pakistan State Oil Company Ltd; is the largest oil marketing company of Pakistan. It is

engaged in the Storage, Import, Distribution and Marketing of Petroleum Products,Petrochemicals, Aviation & Bunker Fuels, LPG and CNG Dominates the Countrys Fuel

and Energy Need.

Since its inception in 1976 the company has been meeting more than 70% of the

countrys fuel needs. PSOs 3805 outlets all across the country markets more than 12

million tons of fuel products annually. This network is supported by PSOs 28 storage

facilities with a capacity of more than 800,000 tons. PSO took a major step in improving

its distribution facilities by acquiring 12% equity in the 800km long Karachi-Mehmoodkot

White Oil Pipeline.

As part of PSOCLs policy of providing better customer service, it has embarked upon its

New Vision of retail development program. Equipped with the most modern facilities like

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electronic dispensing units, auto car wash, convenience stores, internet facilities and

business centers. These state of the art designed stations provide greater customer

confidence and a friendlier environment. As a manifestation of PSOCLs greater

customer focus a PSO 24hr Customer Service has been launched where customers

can lodge their queries and suggestions about various PSO products and services.

Along side its retail network, PSO is playing an equally important role in the industrial

sector. From the locomotives of Pakistan Railways to the giant turbines of Power

Projects, all are fuelled by PSO. Being fully alive to its responsibilities towards the

agriculture sector PSOs 700 strong agency network helps keep the farm machinery

running. Further, its kerosene sales are a major source of energy for the rural and

lacking gas facilities.

Pakistan State Oil Company Limited remains equally strong in Aviation and Bunker

Sales. PSO has been constantly upgrading its facilities to serve a wide range of

commercial aircrafts. Through a chain of eight Aviation Service Stations scattered all

across the country PSO fuels the aircrafts of many local and international airlines.

Acquisition of new Lahore Terminal Complex at the Lahore International Airport has

enabled PSO to serve the busiest corridor of East/West bound flights benefiting the

airlines in shape of time saving and lesser fuel burn off. While its bunkering facilities at

all the major ports of country fill up the ocean liners of many nationalities facilitating the

nations international trade.

In its endeavor to provide quality lubricants, PSO has formed an alliance with world-

renowned company Castrol whose products are manufactured at PSOs own ISO 9000

certified facilities ensuring the highest quality standards for both retail and industrial

sales.

More cordial relationship with its dealers is one of the important objectives of PSOs

New Vision Program. To give them a sense of participation PSO has instituted TOP

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DEALER AWARDS and MILLION LITER AWARDS whereby efforts of the high

performing dealers are recognized.

Emergence of Health Safety & Environment (HSE) as the corner stone of PSOs

corporate governance testifies to its commitment to environmental protection. Complete

HSE Certification of all its facilities and installations is one of its major goals for the

coming months, which are being vigorously pursued.

Privatization of Pakistan State Oil Company Ltd; is underway whereby JP Morgans

financial advisory consortium is assisting the Government of Pakistan in the

privatization process. They have undertaken the initial due diligence including financial

and regulatory issues and subsequent to which the interest of the potential investors in

the transaction will be solicited.

Company profilePSO is the market leader in Pakistans energy sector. The company has the largest network of

retail outlets to serve the automotive sector and is the major fuel supplier to aviation, railways,power projects, armed forces and agriculture sector. PSO also provides Jet Fuel to Refueling

Facilities at 9 airports in Pakistan and ship fuel at 3 ports. The company takes pride in continuingthe tradition of excellence and is fully committed to meet the energy needs of today and rising

challenges of tomorrow.

Pakistan State Oil, the largest oil marketing company in the country, is currently engaged instorage, distribution and marketing of various POL products. The companys current market

share of 82.3% in the black oil market and 59.4% share in the white oil market, alone speakvolumes about its success.Pakistan State Oil Company (PSO), is the largest Oil Marketing Company (OMC) operating in Pakistan

and engaged in the storage, distribution and marketing of POL products and is among the countrys

largest corporate entities with highest earnings and capitalization. Supported by well-established

infrastructure built at par with international standards, comprising around 877,000 million tons storage

facilities representing almost 81% of the total storage capacity in the country. PSO has an edge over its

competitors in terms of economies of scale and cost effective operations.

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PSO has always been considered as a blue chip company with market capitalization of around Rs. 50

billion (USD 860 million). The company is the winner of Karachi Stock Exchange Top Companies Award

and a member of World Economic Forum.

The PSOs retail coverage of over 3,800 outlets which representing 80% participation in total industry

network. The rapidly expended international standard New Vision outlets are more than 800. These new

outlets accommodate the end users needs but also add beauty to the landscape. These outlets are

equipped with convenience stores, business centers, Internet facility and CNG facility, etc. To ensure the

quality of the products being sold to customers, 16 mobile quality-testing units have been deployed in

all major cities to carry on-the-spot checks for quality and quantity.

Alongside its retail business, PSO also caters to the fuel demand of the industrial consumers that

includes power generation, railways, sugar, textile and steel mills, etc. The company has also been

meeting the fuel needs of defense of the nation and maintains on time supplies to armed forces.

PSO operates at 8 airports and serves 4 domestic and 18 international airlines under its technical/

commercial license agreement with Air Total International. PSO enjoys over 70% market participation in

aviation fuel. PSO participation in Allama Iqbal Airport, Lahore is 100%.

PSOs LPG business unit, supported by 4 plants with combined capacity of 750 MT/day, is delivering

cheap fuel to low-income households and rural areas where natural gas is not available. The trade unit is

fully alive of its responsibilities of delivering Kerosene, Light Diesel Oil and Lubricants to end-user via 580

distributors appointed all over Pakistan.

Industry Profile

There are four main OMCs in Pakistan that includes PSO, Shell, Caltex and Total. PSO is the market

leader by holding overall 67% of market share and with 22% share Shell Pakistan hold second position.

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Market Segmentation

Petroleum industry is categorized into two main markets according to the nature of the

products and their usage. The Whit Oil segment includes MOGAS, Kerosene, Diesel

and Jet Oil that are purified fuel. The Black Oil segment represents the products, which

are less purified and used in mostly industrial sectors.

The White Oil Markets has registered the 2.6% growth while the Black Oil Market faced 15% decline due

to low demand in power sector especially by HUBCO.

PSO holds market leadership in White Oil Market with 59 % and Black Oil Market with 79% participation.

White Oil Market Black Oil Market

PSO67%

Shell22%

Others11%

Market Share

PSO59%

Others41%

PSO79%

Others21%

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PSO Major Highlights

Sold 7 million tons of furnace oil the highest in the last 8 years

Efficiently managed supply to the power sector despite the liquidity crisis

Imported approximately 90% of the countrys POL imports - 3.4 million tons of HSD and 5 milliontons of FO

Helped in the revenue collection of more than Rs. 161 billion to the GOP (Sales Tax: 97 billion, taxes:1.4 billion,PDL: 61 billion)

Extended support to various charitable organizations in the health & education sector includingcontribution for the rehabilitation of IDPs due to the Swat operation

Excellence in Customer Service:

PSO serves a wide range of customers throughout Pakistan, including retail, industrial, aviation,

marine and government/defence sectors. Professionals at PSO strive for providing unmatched and

diverse services to the customers in line with best international practices. PSO's state-of-the-art NewVision retail outlets are equipped with the most modern facilities, including auto car wash, electronicdispensing units, convenience stores, business centres, internet facilities and Easy Payment Centres for

payment of utility and Citibank credit card bills. The concept of Quick Oil Lube Vans introduced byPSO, provides the lube change facilities at customers' doorsteps. About 21 Mobile Quality Testing

Units ensure top of the line quality of products and services. As innovative customer service initiatives,PSO has launched Loyalty Card, Corporate Card, Fleet Card and Prepaid Card. These cards provide

added convenience, flexibility and security to the customers while enabling them to earn redeemableloyalty points and avail attractive discounts for purchase of non-petroleum products at a large number

of merchant outlets in various cities on use of Loyalty and Corporate Cards.

For efficient handling of customer complaints, queries and suggestions, PSO has developed CustomerService Centres at all its 14 divisional offices. Furbished with a toll free telephone number (0800-

03000) and automated customer feedback registration system, these centres provide an efficient systemof 24-hour customer care. An attractive and comprehensive.

Total Quality Control:

PSO has been meeting the country's fuel needs by merging sound business sense with national

obligation. In order to satisfy the customers' needs while ensuring the highest quality of products andservices, PSO has introduced total quality management system in its operational activities. Consistent

conformance to prescribed standards and specifications across the whole range of activities from

receipt, storage, transportation and delivery of products is the cornerstone of PSO's qualitymanagement system. In addition to quality assurance in upkeep and maintenance of existing facilities,compliance with quality standards is ensured in construction of new facilities like recently developed

state-of-the-art facilities for Aviation customers at Lahore Airport.

Health, Safety and Environment:

Ensuring the health and safety of PSO employees, contractors, customers and members of public likely

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to be affected by the Company's operations is one of the basic corporate objectives, and as a priority itranks equally with market share and profit. Accordingly, it is the Company's policy to perform work in

the safest practicable manner, consistent with best industrial practices while adhering completely to therequirements of health and safety codes and practices. The Company's Health, Safety & Environment

(HSE) Steering Committee monitors HSE compliance on regular basis while HSE Site Committees

ensure that HSE Requirements are met at all operating locations, including Depots, Terminals, Plants,Retail Outlets and Airports. Use of relevant safety equipment at work is mandatory for employees.Regular HSE audit of facilities and HSE training of relevant staff is carried out and commissioning of

new facilities is subject to HSE clearance. Adequate resources are made available to ensure the successof HSE policy.

Corporate Social Responsibility:

PSO is highly committed to fulfillment of its corporate social responsibility and believes that the

benefits of the Company's progress and financial gains must flow down to public at large upto thegrassroots levels, particularly to the under-privileged and deprived sections of the populace irrespective

of ethnicity, caste and creed. PSO has undertaken a wide range of initiatives to support several social,health and educational programs. Such initiatives include instituting gold medals, cash awards and

scholarships for top students of leading professional educational institutes, providing computer trainingto students and other residents of Badin district in rural Sindh province through a well facilitated

training institute established for this purpose, providing moral and financial support in form ofdonation on compassionate basis to charitable institutions, installing direction signs and traffic signals

at major streets and thoroughfares, supporting Citizen Police Liaison Committee and sponsoring roadawareness programs like Karavan Karachi for the children.

Reform of Corporate Governance:

PSO's comprehensive and far-reaching corporate renewal programme resulting in dramatic corporate

transformation has been widely appreciated at various national and international forums, by world'sleading consulting and financial advisory firms and by leading educational institutions. This

programme covers the revamping of the organizational architecture, rationalization of staff, employeeempowerment and development, and efficiency and transparency in decision-making through Cross-

Functional Teams.

PSO's corporate structure has evolved into a matrix, which has divided the Company's majoroperations into independent activities supported by the financial, legal, information and other services.

These activities operate in an autonomous and collegial manner in the form of Strategic Business Unitsbased on the clear and transparent allocation of responsibility and accountability. This structural

change has been reinforced and related checks and balances have been established by putting in placeseveral corporate monitoring and control systems.

One of the top priority areas of PSO's corporate reform is Human Resource Development. The

Company has undertaken several initiatives to ensure induction and training of professionals with theobjective of ensuring high level of professionalism and productivity at all levels of its employees.

Through computer training, various in-house courses, sponsorship of staff for studies at professionalinstitutions and seminars, the Company is providing its employees the opportunities for continuous

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development and learning.

Effective implementation of corporate reform and business development strategies in line with bestinternational practices has enabled PSO to maintain its market leadership position in a highly

competitive business environment

0DUNHW/HDGHULQ(QHUJ\VHFWRU:

Pakistan state oil is the market leader in Pakistans energy sector. The company has the largest

network of retail outlets to serve the automotive sector and is the major fuel supplier to aviation,

railways, power projects, armed forces and agriculture sector. PSO takes pride in continuing the

tradition of excellence and is fully committed to meet the energy needs of today and rising

challenges of tomorrow.

Pakistan State Oil, the largest oil marketing company in the country, is currently engaged in

storage, distribution and marketing of various POL products.

&855(179$/8( the Companys current value of Rs. 75 billion,

0$5.

(76+$5(

MARKET SHAREin Black oil : 82.1% MARKET SHARE in white oil : 61.2%

The companys astounding growth in terms of sales and turnover, combined with its status of

being the

First Pakistani Public Sector Company to become a member of the World Economic Forum(WEF)

Winning the Karachi Stock Exchange Top Companies Award has made PSO anotable company world over.

PSO has the widest strategic oil distribution network. This network comprises of 29 storage

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depots and 9 installations, 860,000 MTs of capacity i.e. almost 81% of total national

storage, numerous pipe lines network and equity partnership in White Oil Pipeline Project

(WOPP) from Karachi to Mehmood Kot.

A most efficient product movement system for its POL products facilitates the operations at PSO.

This system includes a fleet of 6000 tank lorries, tank wagons and pipelines. With the inception of

white oil pipeline (WOPP) the pattern of supplies from Karachi has changed drastically as the

entire white oil movement from Karachi has been switched over from tank lorries to pipelines.

Moreover, to make this system more efficient and effective, new pilfer-proof tank lorries equipped

with satellite tracking system have been introduced.

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PSO has the largest network in the country. Out of these, 1,610 outlets have been upgradedas

per the New Vision Retail Program, with most modern facilities like

electronic dispensing units, convenience stores, business centers, Easy Payment Centers and

customer friendly staff to provide unmatched and diverse services to its customers, all of whichare comparable to international practices.

The fact that PSO serves 2.8 million retail customers on daily basis, along with 2000 industrial

units and business houses, is indicative of its vast customer base. The company has also been

meeting the fuel needs of various government entities, armed forces, railways, agriculture sector,

IPPs and industrial units.

PSO also provides Jet Fuel to Refueling Facilities at 9 airports in Pakistan and ship fuel at 3 ports.

In July 2002, PSO Loyalty Cards were introduced to reward the retail customers for their

loyalty and patronage towards the company. In February 2003 PSO launched its Fleet Cards

and Corporate Cards, which are fuel-based credit cards for the business entities. These cards

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along with the companys Prepaid Cards, provide convenience, flexibility and security to

customers, while enabling them to earn redeemable loyalty points and avail attractive discounts

on non-petroleum products.

Business At A GlancePakistan State Oil, the largest oil marketing company in the country is currently engaged in themarketing and distribution of various POL products, including Motor Gasoline, High Speed Diesel,

Furnace Oil, Jet Fuel, Kerosene, LPG, CNG, Petrochemicals and Lubricants. In addition to this we alsoimport different products according to their demand pattern and possess the biggest storage facilities

representing 80% of the countrys total storage capacity.

Brief overview of each business facet of PSO is stated below: Marketing & Distribution Thecompany has the largest distribution network comprising of 3,620 outlets. Out of which 3,384 serve

retail customers, 53 outlets cater to agriculture sector and 183 outlets serve our bulk customers. Out of

a total number of 3620 outlets, 1,735 have been upgraded as per the New Vision Retail Program withmost modern facilities.

Moreover, there are 37 company owned and company operated (Co-Co) sites to serve our retailcustomers. The idea of setting CoCo sites was to make these stations flagships under maximum

supervision and intense scrutiny to maintain the highest level of efficiency, service and customer care.

PSO serves 2.8 million customers every day. Our leading retail brands include environment friendlyfuels - Premier-XL Green-XL. Moreover, the company also was a pioneer in introducing an array of

cards for the convenience of our customers. These cards include corporate, fleet and pre-paid cards fprindividuals. These cards are well-established and have received an overwhelming response from the

corporate world and from the masses. Acquisition of Products

Traditionally, due to the high demand of two products, i.e. High Speed Diesel (HSD) and Furnace Oil

(FO), there has been a supply deficit in the country. Transport and automotive sectors are the mainconsumers of HSD and mogas whereas power plants and IPPs use up Furnace Oil for electricity

generation. To meet the supply deficit PSO imports HSD and FO along with some additional volumesof mogas as and when required. The OMCs import around 9.8 million metric tons of the white and

black oil products whereby PSO has the lion's share of imports accounting for more than 88 percent.

PSO has maintained a 30-year mutually-beneficial business relationship with Kuwait PetroleumCorporation (KPC) for the purchase of HSD and FO. This is through a term contract, which assures

both parties of continued product supply and protects PSO from frequent price fluctuations in theinternational HSD market.

Other than importing products, various refineries in Pakistan including Attock Refinery Limited,

Pakistan Refinery Limited, BOSICOR, NRL and PARCO cater to our product needs including that ofLPG, motor gasoline, kerosene, jet fuels, high speed diesel and furnace oil. Storage PSO

possess huge infrastructure facilities from Karachi to Gilgit. This entails 9 installations and 12+1depots with a storage capacity exceeding 1 million metric tones, representing over 80% of the total

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storage capacity owned by all oil marketing companies.

To optimize storage utilization, the company has recently also provided hospitality to refineries andother oil marketing companies that include Chevron, Total PARCO and Hascombe. Product

Movement The modes used for product movement of POL products by PSO include tank lorries,

tank wagons and pipeline. We have a fleet of around 6,000 tank lorries. Around 1200 tank lorries,equipped with tracking and pilfer proof system, have been upgraded as per international standardswhich are engaged in delivering quality fuels across the country.

With the inception of white oil pipeline (WOPP) from Karachi to Mehmood Kot via Shikarpur &

MFM (Mehmood Kot / Faisalabad / Machikey) pipeline, the pattern of supplies from Karachi havebeen drastically changed as the entire white oil movement from Karachi has been switched over from

tank lorries to pipeline. Lubes Manufacturing & Sales To cater to all kinds of lubricantscustomers, including automotive, hi-street and industrial consumers by meeting the national demand

through products of international standards, PSO has set up a state-of-the-art Lubricants ManufacturingTerminal (LMT) at Korangi Industrial Area in Karachi. Raw materials (Lube Base Oils and Additives)

are acquired from suppliers of national and international repute and stored as per the prevailing globalstandards. The most advanced computerized equipment like the Automatic Batch Blender (ABB),

Simultaneous Metered Blending (SMB) and Additive Dozing Unit (ADU) have been installed at theLubricant Manufacturing terminal (LMT) in order to produce top-quality lubricants in desired volume

as per the demand.

The packages in which the lubricants are offered to customers are also selected after thoroughevaluation of suppliers as it is very important to PSO to supply lubricants to its valued customers as per

their requirements. Therefore, lubricants are packed and sealed at the LMT in such a manner thatcustomers receive them without any impurity and weather effect.

To cater to the local lubricants requirements Free Lube Delivery Vans have been introduced. These

vans carry consignments to all Retail, Hi-Street and Industrial Consumers, even up to Dhabeji, Thattaand Hub Chowki. Whereas to dispatch the required consignments to customers located in various other

parts of the country, lubricants are transferred from the LMT to the upcountry depots through a fleet of20 ft and 40 ft dedicated containers from where onwards the customers are fed according to their

orders. Our leading lubes brands are DEO and Carient. Non-Fuel Retail PSO has gone beyondfuel for its retail customers and has introduced quick service restaurants, courier windows, convenience

shops, wash express, ATMs and utility bill payment windows for its customers. IndustrialConsumer Alongside its retail and non-fuel retail business, PSO also caters to the fuel demands of

industrial consumers that include power generation, railways, sugar and the textile industry. Thecompany has also been meeting the fuel needs of the armed forces of Pakistan. PSO also provides

refueling facilities at 9 airports in Pakistan as well as marine ship fuel at 2 ports.

VisionTo excel in delivering value to customers as an innovative and dynamic energy company that gets to the future

first.

Mission

We are committed to leadership in energy market through competitive advantage in providing the

highest quality petroleum products and services to our customers, based on:

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Professionally trained, high quality, motivated workforce, working as a team in an environment,which recognizes and rewards performance, innovation and creativity, and

provides for personal growth and development

Lowest cost operations and assured access to long-term and cost effective supply sources

Sustained growth in earnings in real terms

Highly ethical, safe environment friendly and socially responsible business practices

ValuesExcellence

We believe that excellence in our core activities emerges from a passion for satisfying our customers' needs in

terms of total quality management. Our foremost goal is to retain our corporate leadership.

Cohesiveness

We endeavor to achieve higher collective and individual goals through team. This is inculcated in the

organization through effective communication.

Respect

We are an Equal Opportunity Employer attracting and recruiting the finest people from around the country.

We value contribution of individuals and teams. Individual contributions are recognized through our reward

and recognition program.

Integrity

We uphold our values and Business Ethics principles in every action

and decision. Professional and personal honesty, dedication and commitment are the landmarks of our

success. Open and transparent business practices are based on ethical values and respect for employees,

communities and the environment.

Innovation

We are committed to continuous improvement, both in New Product and Processes as well as those existingalready. We encourage Creative Ideas from all stakeholders.

Corporate Responsibility

We promote Health, Safety and Environment culture both internally and externally. We emphasize on

Community Development and aspire to make society a better place to live in.

HistoryThe creation of Pakistan State Oil (PSO) can be traced back to the year 1974, when on January 1st;

the government took over and merged Pakistan National Oil (PNO) and Dawood Petroleum Limited

(DPL) as Premiere Oil Company Limited (POCL).

Soon after that, on 3rd June 1974, Petroleum Storage Development Corporation (PSDC) came intoexistence. PSDC was then renamed as State Oil Company Limited (SOCL) on August 23rd 1976.

Following that, the ESSO undertakings were purchased on 15th September 1976 and control wasvested in SOCL. The end of that year (30th December 1976) saw the merger of the Premier Oil

Company Limited and State Oil Company Limited, giving way to Pakistan state Oil (PSO).

After PSOs inception, the corporate culture underwent a comprehensive renewal program which wasfully implemented in 2004. This program over the years included the revamping of the organizational

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architecture, rationalization of staff, employee empowerment and transparency in decision makingthrough cross functional teams. This new corporate renewal program has divided the companys

major operations into independent activities supported by legal, financial, informative and otherservices. Inorder to reinforce and monitor this structural change, related check and balances have been

established by incorporating monitoring and control systems.

Human Resource Development became one of the main priorities on the companys agenda under thiscorporate reform.

It is due to this effective implementation of corporate reform and consistent application of the bestindustrial practices and business development strategies, that PSO has been able to maintain its

market leadership in a highly competitive business environment.

PSO STEP BY STEP

January 1, 1974

The federal government took over the management of PNO (Pakistan National Oil) and

DPL (Dawood Petroleum Limited), renamed into POCL (Premier Oil CompanyLimited) under marketing of Petroleum Products (Federal Control Act, 1974)

June 6, 1974

The government incorporates Petroleum Storage Development Corporation PSDC

August 23, 1976

PSCDC renamed to State Oil Company Limited (SOCL)

September 15, 1976

The Governement purchases ESSO undertakings, vests their control in SOCL

December 30, 1976

The Government merges PNO and POCL into SOCL (State Oil Company Limited) and

renames it Pakistan State Oil Company Limited (PSO)

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1999

The new vision program is launched with the new logo of PSO.

Operations of PSO

Present Business:

Pakistan State Oil, the largest oil marketing company in the country, is currently engaged in

storage, distribution and marketing of various POL products. The companys current marketshare of 82.3% in the black oil market and 59.4% share in the white oil market, alone speak

volumes about its success.

Future Business

The Managing Director briefed the future business strategy stating that the management and

employees shall continue to work towards establishing PSO as an energy solution company in

full compliance with HSE standards. He added that the company shall reinforce technology-

driven value-added initiatives and shall work towards increasing income from non-fuel and

gaseous fuel businesses.

RELATIONS WITH OTHER BUSINESSES:

Although the market share of PSO is the largest in the industry. The main competitors of it are

Shell and Chevron.PSO has maintained a 30-year mutually-beneficial business relationship with

Kuwait Petroleum Corporation (KPC) for the purchase of HSD and FO. Other than importingproducts, various refineries in Pakistan including Attock Refinery Limited, Pakistan Refinery

Limited, BOSICOR, NRL and PARCO cater to our product needs including that of LPG, motor

gasoline, kerosene, jet fuels, high speed diesel and furnace oil. And also export oil to

Afghanistan.

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Products & Services

PSO caters to POL requirements of a wide spectrum of customers comprising the retail consumer,

various industrial units, government, power projects, aviation and marine sectors of Pakistan. We are

truly the drivers of economy of this country.

A network of 3612 retail outlets enables us to reach Pakistanis from Nagarparkar to Sost. We are proud

to cater to the fuel and non fuel needs of approximately 2.8 million customers per day.

PSO industrial consumer dominance in the government sector can be judged by the fact that all the

major government entities like OGDC, Pakistan Army, Pakistan railways, Navy, NLC, PAF Wah and HIT

have entrusted PSO to meet their POL needs.

Besides supplying fuel to national power utilities like WAPDA and KESC, PSO is the sole furnace oil

supplier to all Independent Power Projects (IPPs) in Pakistan with a share of over 80% in furnace oil

market. Moreover, PSO is also playing its due role in meeting the growing energy demand of thecountry.

PSO also supplies fuel to industrial units like textile, cement, agriculture, transport etc. Our industrial

consumer base includes prestigious entities like the Presidency and the Prime Minister Secretariat,

where PSO has developed consumer outlets for timely refueling of their fleets.

Furthermore, PSO also serves the fuel needs of both national & international air carriers. We also

provide jet fuel into-plane refueling facilities at 9 airports of Pakistan i.e. Karachi, Lahore, Islamabad,

Peshawar, Multan, Faisalabad, Turbat, Pasni and Sialkot.

We also supply fuel to ships at Karachi Port, Korangi Fish Harbour & Port Qasim. Moreover, we cater to

the fuel requirements of Pakistan Navy, Maritime Security Agency, Karachi Port Trust, PNSC, Faisal

Marine Oil Services (Pvt) Ltd.

Retail Fuels

Retail Fuels is one of the core business segment of PSO, with its finest quality brands Premier XL, Green

XL and E-10. The retail team at PSO works relentlessly to fulfill the needs of the automotive sector. With

more than 3,500 retail outlets nationwide; PSO serves approximately 2.8 million retail customers daily.

PSO Retail department is spread across the nation with 14 division offices. All divisional offices and retail

outlets across the country are linked to the head office through state-of-the-art enterprise resource

planning software SAP.

Retail Department continuously strives to provide unmatched service and customer care at PSO

forecourts round the clock.

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Gaseous Fuels

Introduction of Gaseous Fuels:

Since more than a decade, Pakistan has witnessed a remarkable shift of consumers from petroleum to

gaseous energy sources. Over the years, Gas has become a preferred energy source for the consumers,

mainly due to the price competitiveness. Resultantly, CNG/ LPG have become The Fuel for theautomotive sector, which are slowly and gradually replacing conventional liquid fuels.

In such market scenario, being a dynamic energy company, strategic and focused diversification has

been inevitable for PSO, in order to maintain the market leadership position.

Therefore, in order to focus this business segment with full trust and to ensure active participation in

ventures related to CNG and LPG, a separate segment for Gaseous Fuels has been formed in 2006. This

highly lucrative and potential energy segment looks after the existing business of CNG and LPG, vis a vis

capitalize on business projects related to CNG and LPG.

Biodiesel

Biodiesel is a renewable, environment friendly substitute for petro-diesel fuel. It is derived from

Jatropha Curcas plant which is a hardy, wild oilseed perennial plant. Conditions for cultivation of this

plant are favorable in Pakistan, and the biodiesel derived can reap benefits in the form of economic,

environmental, mechanical and national security.

PSOs focus is on using this plant as feedstock and utilizing countrys ample marginal land for cultivation.

This initiative would create employment opportunities and contribute towards the development of the

nation. Being a focal member of AEDB Biodiesel Advisory Committee which is working on the roadmap

of National Biodiesel Program, PSO believes that biofuels will make a major contribution to road

transportation and power generation fuels. This will also lead to reduction in carbon emissions in the

years to come.

Aviation & Marine

The company realized from the outset that it needs to join hands with an internationally-accredited

company having wide research base to attain leadership role in aviation business. PSO signed an

agreement with Air Total International France as their technical partners in order to share not only the

know-how but also to benefit from their strong standing in the global aviation industry.

In 1999, PSO took the lead by stepping forward and invested a significant amount by constructing state-

of-the-art fuel farm facility at the newly-developed Allama Iqbal International Airport at Lahore. This

was followed by constructing refueling facilities at another 8 airports of Pakistan. Our Aviation & Marine

department and all its nine aviation stations are ISO 9001 2000 certified and maintain high safety

standards.

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PSO has retained its market leadership in the Marine business as well. A special quality treatment unit -

Precoat Unit - was installed in the year 1997 to cater to the special HSDO requirement of the entire

Pakistan Naval fleet. To further facilitate supplies to Pakistan Navy, a pipeline has also been laid at OP-III.

In line with the soon-to-be-introduced environment laws by International Maritime Organization (IMO),

PSO is in the process of implementing MARPOL Annex VI (Marine Pollution) for bunker supplies to all

vessels calling at Karachi and Bin Qasim ports.

Companys corporate policy is to support at times of need and Aviation played its due role during the

Tsunami crisis and the earthquake of October 8, 2005.

Non Fuel Retail

Today, PSO symbolizes more than just fuel. Its corporate image extends to well beyond therealm of fuel, a

thoroughly deserved recognition earned since its historic turnaround in a rather short span of justeight years

PSO's 'Non Fuel Retail' initiatives include:

ATMs

Shop Stop Quick Service Restaurant

PSO Quality Assurance

PSO Quality Assurance Department comprises of following three main sections:

Quality Control Laboratories

Quality Management System (QMS) Support Section

Mobile Quality Testing Unit Network

Quality Assurance (QA)is a system used by management under which a company ensures that all Products and services being

offered are of quality to satisfy the Customers.

QA is a system used by management under which a company ensures that all Products and services

being offered are of quality to satisfy the Customers.

PSO Departments

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1. Legal DepartmentWith a view to protect the company as a corporate entity and in order to safeguard the company interest

and position against all sorts of litigation and other legal matters, the legal department has, as part of its

contribution to the organization's corporate governance and in order to take necessary, calculated, effective

and successful measures and to overcome the flaws & weaknesses came up with a number of objectives and

in order to achieve the same adopted numerous strategies, and as a result of the implementation of such

strategies the legal department has managed to achieve number of accomplishments.

2. Special Projects Department1. Retail Construction

The Retail Construction department has been responsible for the development of New Vision Retail and

Consumer Outlets throughout Pakistan since the inception of the New Vision Programme in 1999. During the

past 5 years PSO completed a total number of over 1000 NVRO's and another 200 outlets will be developed

during the current fiscal year. Outlets are constructed on fast track basis with some outlets completing within

30 days. One outlet was completed in 15 days - an industry record in Pakistan.

2. Retail Facilities

Retail facilities department has always played a vital role in promoting company image through better up

keep of retail outlets- especially New Vision Retail Outlets (NVRO's) and made significant contributions in

companies strive to gain market share by means of reduced forecourt downtime.

3. Corporate Planning LevelThis is no longer a news that PSO's corporate development has been widely acknowledged as one of the

most dramatic examples of corporate turnaround in the world. Today, PSO is a popular topic of case studies

in Pakistan and abroad and one of the most sought out sources of corporate advice and guidance in the

country. Several major business enterprises have obtained permission to replicate PSO's Corporate Planning

model. Based on its corporate excellence, PSO ranks among top global companies by way of its membership

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of the World Economic Forum. Qualification for the Forum's membership, based on stringent and forward

looking criteria, is a unique distinction for PSO as a Pakistani company.

This unprecedented level of corporate accomplishment and such a high international ranking achieved by a

Pakistani company is a product of professional teamwork and outstanding corporate leadership.

Nevertheless, the story of PSO's global renaissance would be incomplete without due recognition and

acknowledgement of the dedicated professional support of a very high caliber provided by the newly

established Corporate Planning department (CP) of PSO, based on world-class qualifications and high-level

international exposure of CP team.

The legendary rise of PSO to global horizon, duly decorated by global recognition of corporate excellence,

involved dedicated hard work of highest professional standard in the following broad areas:

Establishment of a robust framework of the state-of-the-art systems and procedures of corporate planning,

management and performance review

Without a well-established and competitive framework of corporate systems, no company can achieve such

a high professional ranking that PSO has achieved. Usually, the companies get such systems developed on a

turnkey basis by external consultants, based on payment of heavy fees and expenses. PSO has a unique

distinction of developing and putting in place such systems through in-house teamwork. CP played a key role

in this regard. The in-house systems development enabled PSO professionals to internalize the systems for

effective implementation.

Today, PSO's planning and management structure is highly regarded. In addition to formulating PSO's first

ever Corporate Plan in line with best business practices, CP assisted all the departments of PSO in developing

their plans. Today, every department of PSO, particularly each business unit, has a robust business plan.

Together, the Corporate Plan and departmental plans form a cohesive, dynamic and internationally

competitive strategic framework for good corporate governance.

PSO's systems and procedures have been extensively reviewed and evaluated by leading international

organizations and individuals, who have been involved in study and due diligence of PSO's corporatedevelopment. While acknowledging PSO's remarkable corporate transformation in categorical terms, the

independent international Financial Advisory consortium, JP Morgan, made special references in their

Information Memorandum to the elements of reform established by CP. That Memorandum, circulated

around the world, contained the following statement:

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"Significant progress has been made towards putting in place the basic framework for corporate

reform in line with the modern concepts and practices. This includes streamlining the investmentplanning process, developing a model for business-wise and product-wise profitability analysis and

developing a comprehensive corporate plan."

Subsequent to the assessment by JP Morgan, several additional systems and models have beendeveloped at PSO, including the Corporate Performance Reporting System (CPR) and the Capital

Resource Planning, Management and Optimization System (Capex System). CPR operates by way ofobtaining and analyzing up-to-date sales and expense information relating to products and business

units, translating that information into comparable benchmarks and conducting comparison of the present level of performance with past and planned levels of performance. CPR is a powerful

analytical tool and control mechanism, which serves as a watchdog to ensure that implementation ofthe Corporate Plan is on-course and the performance milestones are achieved in a timely manner. It

helps reconceptualise the corporate business and establish primacy of Strategic Business Units withclear allocation of responsibility and accountability. Capex System facilitates understanding,

development and implementation of Investment Plan as well as on-line management of capitalresources. It helps eliminate the hassle-factor inherent in manual budget operation, including

appropriation, re-appropriation, re-allocation, contingency utilization, record reconciliation,reporting, and periodic monitoring & review.

While serving as Secretariat of PSO's Management Committee (Man-Com), CP helped redefine the role and

restructure the operations of Man-Com to transform it into an institution playing a pivotal role in PSO's

corporate renewal and market success. Presentations to Man-Com utilize numeric and graphic depictions of

how the company measures up not only against the industry but also against itself. Meetings of Man-Com

provide useful corporate exposure and learning opportunity to young professionals, who are encouraged to

participate and present in the meetings.

In recognition of PSO's glaring progress and significance of CP's assistance in this regard, Mr. Amjad Parvez,

General Manager, CP, received invitations to lecture at leading business schools of USA and UK. Professor

Thomas W. Dunfee invited Mr. Amjad Parvez to lecture at the Wharton Business School, USA, in the

following words:

"I am delighted to invite you to participate as a guest lecturer in my class the PSO case you are presenting

will enhance the course and promote class discussion."

Compilation of PSO's corporate accomplishments in terms of strategy, structure, processes and performance

This is a prerequisite to sustainable market leadership and professional recognition of a company.Higher professional and scholarly circles give serious consideration to corporate reform initiatives

only if they are carried out in context of classical and neo-classical management and organizationtheories and within the framework of comparative research on corporate transformation. Such

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corporate modeling and research is undertaken by world's leading companies, either by establishinginternal R&D units equipped with adequate professional resources, or by assigning the work to

international consulting firms. It is yet another distinction of PSO to undertake and successfullycomplete this work in-house, without external advisory support. CP played a vital role in this regard.

CP developed a corporate model to work as a capstone on PSO's transformation initiatives. This model trackssuccess from corporate policies and management behavior through employee attitude to customer

satisfaction and financial performance. It provides an effective framework for analyzing various elements of

PSO's corporate renewal program in context of classical and modern research. This corporate model

triggered and facilitated various landmark studies on PSO as well as consideration and recognition of PSO's

accomplishments by international forums. This exercise resulted in exponential rise in PSO's professional

reputation and ranking.

In this context, internationally renowned management scholar Professor Roderick Martin acknowledged

PSO's remarkable corporate development, in the following words:

"The direction of structural change has been identified, which increased decentralization,management autonomy and the change from reliance on managerial authority to teamwork and the

delegation of responsibility. The purpose of the structural change is to increase the flexibility of thefirm and its ability to respond to different market conditions."

In addition to playing a vital role in institutionalizing PSO's corporate reform and securing glittering

recognition benchmarks for the Company, CP orchestrated PSO's success story as a case of exemplary

corporate transformation through presentations to business professionals in seminars on best corporate

practices, and lectures at the advanced courses for senior government officers. CP's relentless quest for

corporate excellence marked a new era of professional dynamism and management excellence in PSO. The

successive waves of value addition, in terms of innovative and high-tech systems, international studies and

global recognitions, rocked the corporate scene.

4. Aviation & MarineOur objective is to provide reliable, timely & safe service to all our valued customers.

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Technical Support

PSO is in technical & commercial collaboration with Air Total International, Paris, one of the largestoil companies of the world.

Every year PSO is sending 3 employees to France for Aviation training, which keeps them

abreast with the technological development in the industry

a) Our Valued Customers

We are proud to serve both national & international air carriers like Aero Asia, Aeroflot, Air France, Air China,

Defence Aviation Wings, Emirates Airlines, Gulf Airways, Iran Air, Kuwait Airways, Pakistan International

Airlines, Qatar Airways, Saudi Arabian Airlines, Shaheen Air International, Singapore Airlines, Swiss Air, Thai

Airways and many other small carriers/charters etc.

In addition to contractual customers, we also accept carnet of Air Total International, Air BP, WFS, UV Air,

AVCARD. Aviation Department is proud that

Our quality service has given us a market share of approx. 70% volume in the aviation industry of

Pakistan.

We are in the process of getting ISO-9001/2000 certification for Islamabad, Lahore, Peshawar,Multan & Faisalabad Airports by 1st quarter of 2004.

Marine Business Line

Marine Business deals in selling of fuels to ships at Karachi & Port Qasim and is also called the Bunkering

Department.

Products

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There are 3 major fuels, which are used by the ships for their own use.

BFO (Bunker Fuel Oil) commonly known as Furnace Oil.

MGO (Marine Gas Oil) commonly known as High Speed Diesel.

MDO (Marine Diesel Oil) commonly known as Light Diesel Oil.

Supply of DIESO F-76 (Filtered HSDO) to Pakistan Navy.

A special quality treatment unit - Pre-coat unit was installed in July 1997 to cater entire HSDO (Dieso F-76)

requirements of Pakistan Navy for supplying Clear and Bright Colour filtered HSDO, which not only enhance

the life of the machinery but also helps in preserving a healthy pollution free environment.

Activities & task Perform by me

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Financial Analysis (Horizontal & vertical analysis & Ratio Analysis)

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PESTEL Analysis

SWOTANALYSIS

SWOT ANALYSISOF PSO

Strengths

1. Market Share of 70% is one the main strength of PSO.2. Company reputation in the industrial sectors adds the strengths for PSO.

3. Product quality is also strength especially in industrial sector.

4. Service quality like plastic cards and non-fuel activities adds the value.

5. Distribution & Fleet network, which covers 81% country retail network, is the key edge on PSO

its competitors.

6. Promotional activities add value in brand awareness and attraction of new customers.

7. Innovation like Auto Car Wash helps PSO to differentiate with its main competitors.

8. Storage capacity, which holds 80% of total storage capacity of the country, is also key advantageover its competitors.

9. Technical skills in Fleet management are strength for PSO.

10.Visionary, capable leadership adds value to PSO strength like their NVRO operations.

11.Financial Stability with strong reserves, paid-up capital adds the trust of stakeholders.

12.Product line width adds long range of products for more revenue opportunities.

13.Castrol brand affiliation with PSO adds strength in terms of brand awareness.

14.Relations with Government one of the key strength of PSO in order to get legal protections.

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Weaknesses1. Lost & Dissatisfied customers are major weakness of PSO as they are causing the perception of

inefficient PSO.

2. Old retail outlets are major weakness for PSO as they are not enough capable to compete the

Shell, Caltex or Total outlets.

3. Untrained staff at outlets is causing inefficient services.

4. Quality assurance is not so effective to build the image of Quality & Quantity.

Opportunities

1. Afghanistan's Market is the biggest opportunity for OMCs in Pakistan.

2. De-regularities of Oil industry in Pakistan add the opportunity to fill the deficiency in few sectors

of petrochemicals markets.

3. Export Opportunities of Black Oil Products is also adding the opportunities by exporting Black Oil

products, which is facing downfall due to the introduction Gas Oil.

4. Industrial & Trade growth in Pakistan is also the opportunity for PSO as they are adding revenues

in Power sector that is the major customer of PSO.

Threats

1. Risk of forward integration of Supplier is the key threat for PSO and other OMCs in Pakistan.

As the example, the PARCO who is one of the main POL product suppliers to OMCs adopt the

forward integration strategy by introducing its own OMC with its new business alliance TOTAL

and named its OMC as TOTAL-PARCO.

2. Risk of Diversification in technology is also a key threat for PSO as due to new technology used

in industrial sector is causing decline in particular POL products.

3. Availability of Substitutes in Black Oil Market are causing a solid reason for the declining trend

in Black Oil Products, which is major threat for PSO.

COMPETITOR ANALYSIS

PRODUCT LIFE CYCLE STAGES (INDUSTRY)

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We have selected SBU ofPSO, and here we are interested to know that which product of

PSO lies at which stage

MARKET

SEGMENTINTRODUCTION GROWTH MATURITY DECLINE

Retail consumer

segment

Industrial Segment

Agriculture

Segment

Transportation

(AVIATIONS,

MARINES &

RAILWAY)segment

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ANALYSESOF PLC STAGES

Petroleum industry in Pakistan is generally divided into four huge segment

y Retail Consumer segment

y Industrial segment and it is furthur classified in to three segments.

o General Trade (For the General Trade segment includes the major customers like,

NLC, POF Wah, Police, KMC, KWSB, Gairon, Ruplai Group, Engro Chemicals

and Pakistan Steel Mill )

o Defence

o Power Industry (like KESC, HUBCO etc.)

y Agriculture segment

y Transporation segment (AVIATIONS, MARINES & RAILWAY)

The Petroleum industry represents three huge OMCs companies in which one is Pakistan

State Oil(PSO) others are Shell and Caltex . Petroleum industry is categorized into two

main markets according to the nature of the products and their usage. The Whit Oil

segment includes MOGAS, Kerosene, Diesel and Jet Oil that are purified fuel. The Black

Oil segment represents the products, which are less purified and used in mostly industrial

sectors. But we are fousing on their one SBU that is fuel oil.

The market share of PSO in fuel oil is 67 % and shell is 22 % and others are 11%. Well

PSO is mature on Retail consumer segment, because PSO has the largest distribution

channel, which has more then 3800 outlets in Pakistan, and main thing in fuel oil is

availability and PSO is also offering plastic cards for the retail and industrial consumers

according to their requirements. Loyalty Card, Prepaid Cards (available in Rs. 500, 1500,

2500 & 5000), Fleet Card for Corporate Vehicles, Corporate Card for Corporate

employees which provide the conveinence to the customers and built loyality.well other

major players of this industry is also in mature.

PSO is in growth in industrial segment, PSO is solely providing fuel in power sectors,

HUBCO, KESC and other largest industries of Pakistan as well, it is continuously

upgrading on this segment. And shell is also in growth while Caltex is on introductory

stage on this segment.

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In Agriculture and Transportation segment PSO is in growth stage, PSO fuels the

aircrafts of many local and international airlines.

COMPETITION/SEGMENT MATRIX

We are analyzing here market attractiveness with respect to our competitors and segment

wise in which we are interested to know historical growth, projected growth and

companys profitability with respect to segment covered by our & other companies. We

have gather information of market share of companies from different sources and based on

assumption that these three companies captured 89.81% market share overall of oil

industry in Pakistan and remaining shares are covered by rest of the companies.

Competition Retail

consumer

Industri

al

Agricultu

re

Transport

ation

Total Overall

market share

1.PSO 43% 54% 100% 55% 100% 43.28%

2.SHELL 35% 38% 0% 29% 100% 30.15%

3.CHEVRON 18% 3% 0% 14% 100% 16.38%

Others 4% 5% 0% 2% 10.19%

100%

Historical

Growth-2.075% 4.53% .85% 5.5% 2.20%

Projection -6.6% 5.5% 1.9% 9.8% 2.65%

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++ ++ ++

ANALYSIS

PSO and SHELL have face to face competitions with each other in retail consumer and industrial

segment capturing most part of these segments while other local companies are far away.

PSO sustain its leadership in agriculture and transportation segment. This shows that 4 big

segments are captured by three giants while segment of industrial and transportation is lesscaptured by CALTEX.

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DISTRIBUTIONSSHARE AND COMPANYSPOSITIONS (2010)

All figures ofSales per dealers are taken basis on assumption and certain idea given by one

of dealers to us.

% of Rs

mln

All Pakistan

distribution

Companies

turnover share

competitors

turnover share

Outlet

Coverage

PSO 3600 3.02% 44%

SHELL 1900 2.2% 23%

CHEVRON 1200 1.7% 14.06%

Others 1500 2% 18.29%

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Total 8200

Turnover Share = Cos Sales per Dealers/ Cos Sales by all Dealers

Outlet Coverage = Cos Dealers /Dealership

Total Distribution ofOil industry is around 8200 in Pakistan bases on our estimation for

selected companies. Companies turn over share is calculated basis on taking assumption of

sales per dealers ofPSO having 3600 dealers overall.

Similarly, in 2009,Shell has 1900 dealers in Pakistan, and its sales per dealer assumed i.e.

around 2.2% turn over share.Similarly chevron is having 1200 dealers in 2009-10. Its turn

over share is 1.7%.Based on available information and certain assumption we have calculated outlet coverage

of each dealership with respect to each company.

Give your recommendations for the organization in general and for

the branch/office in particular

KEY ISS

UES

y Consumer perception of cheating, mixing of impure oils, low quality product offering

at PSO.

y Consumer perception that internationally renowned competitors offer high quality,

whereas national company equals low quality.

y Sales from un-branded lubricants account for nearly 35% of total sales.

y PSO has the largest retail network, yet still fails to secure the highest market share in the

industry.

y Being a semi-government organization means more bureaucracy and slow decision

making.

y PSO does not maintain the same standards of quality for service and point of sale at all of

its stations.

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y Lack of trust with dealers.

y Non-effective provisional checking policies and standards.

CHALLANGESThe Company is faced with the challenge of declining market share of key products due to

strong competition, shift towards CNG in motor vehicles, substitution of fuel oil for power

generation with natural gas and threats from the smuggled and counterfeit products. The steps

being taken by management to address the challenges are expected to yield favorable results.

The government has taken a number of steps towards deregulation and privatization of Oil and

Gas Sector. These include restructuring of the boards of public sector corporations for good

governance and phased deregulation. There have been extensive consultations between the

government and the industry towards implementation of these policies. These initiatives from

the government and the consultative processes are laudable and will lead to greater efficiencies

of the industry and improved quality of services to the customers. It will also open up

substantial opportunities for investment in the privatization and future growth of the Oil and

Gas Sector. Given an autonomous Board of Management, a better trained professional and

effective employee team and strong infrastructure, PSO is well positioned to take advantage of

the opportunities opening up due to deregulation of the Petroleum Sector with potential for

enhanced future earnings.

ACTIONPLAN

DEVELOPMENT IN ALTERNATIVE ENERGY

PSO has to promote alternative sources of energy in different sectors to overcome the current

energy crisis in the country. Without utilizing the alternative energy resources the progress inmany fields is not possible. PSO works on alternative energy in biomasses, and become energy

provider in industry.

EXTENSION IN NETWORK

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The Company has launched an aggressive plan to build New Vision retail outlets to provide

better quality service to its customers. 110 outlets were completed during the year and more are

being built. A strong focus is being placed on customer and forecourt services with extensive

training of field sales force and attendants. Mobile quality control vans have been introduced in

major cities to monitor quality of products being supplied to our customers.

VALUABLE DISTRIBUTION

Continuous improvement, innovation along with diversification has enabled PSO to enrich its

market share. It has strategic investments in refining and distribution companies such as Asia

Petroleum Limited, Pak Grease Manufacturing Company, Pakistan Refinery Limited and White

Oil Pipeline Project. These investments give PSO a strong backing in terms of achieving

inventory. With an extensive storage capacity of 860,000 metric tons, the company has 3,700

retail outlets across the country while more to come in future.

INCENTIVES FOR DISTRIBUTORS/SUPPLIERS

To motivate and strengthen dealer network, dealer meetings/conferences have been held. Efforts

of high selling dealers have been recognized through "Million Liter" award.

TECHNOLOGIAL ADVANCEMENT

Mobile quality control vans have been introduced in major cities to monitor quality of products

being supplied to customers. An innovative service "Mobile Quick Oil-Change-At-Your-

Doorstep" has been launched in Karachi, Lahore and Islamabad.

BRAND ENRICHMENT

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A number of successful media campaigns (PSO Petro Prize & Scratch-a- Match) have been

launched to strengthen the PSO brand. Marketing alliances with international brands like Pepsi,

Walls and Citibank have been formed. These and other steps are beginning to produce results

and the decline in market share in key products is being arrested.

PSO MARKETING OPERATION

The following are five main competitive edges for PSO over its key competitor Shell Pakistan.

1. PSOs vast storage capacity means ensured supplies.

2. PSOs vast logistics support meeting huge demands in shorter time.

3. PSOs widespread depots and divisions to serve the customer better.

4. Quality and Quantity assured through PSO Fleet of Quality Vans.

5. Prepaid, Loyalty, Fleet and Corporate cards add value to customers