“OIL INDUSTRY”

By
Salman Tahir

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 Oil Industry Outlook
• Refining capacity of around 19.12 Million
Metric Tons
Capacity Wise Share
• Pakistan’s Crude imports in 2008-09 were
around 7.8 Million Metric Tons, while 2.9 Bosicor
PARCO
13%
Million Metric Tons were produced from ARL
26%

indigenous sources. 17%

• The POL consumption in 2008-09 was PRL NRL

24%
20%
around 19.12 Million Metric Tons which is
greater than the local production.

• Petroleum imports account for 27.7% of

the country’s total imports.

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 PRODUCTS
• High Speed Diesel (HSD)
• Furnace Oil
• Light Diesel Oil (LDO)
• Motor Gasoline
• Hi Octane
• Jet Fuel
• Liquefied Natural Gas (LNG)
• Compressed Natural Gas (CNG)
• Base Oil
• Bitumen / Asphalt
• Lubricants

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 PRICING IN THE OIL INDUSTRY
 The OIL industry prices are heavily regulated by the Government
Authorities of Pakistan.
 OGRA (Oil & Gas Regulated Authority) is responsible for the
regulation of the prices of Oil & Gas.
 All major players including SHELL, PSO, CALTEX, TOTAL have to
follow these “fixed policies” (for consumers) of OGRA.
 Oil companies also provide some discounts to their corporate
accounts/industrial buyers and defense projects- for e.g. petroleum
products for military.

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MARKET SEGMENTATION

 Different OMC’s have divided the market into different

segments. They will target a person of low income with CNG.
 Similarly they will target a person of higher income with
HOBC.

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TARGET MARKETING

 Involves evaluating each

market segment’s
attractiveness and selecting
one or more segments to enter
 All OMC’s like any other
company need to target their
market in a way that delivers
maximum profit.
 One thing they must ensure
is uninterrupted supply from
the refineries.

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PSO Ad targeting
a certain segment
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PSO Ad targeting
Another segment
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PROMOTION
In the context of the marketing mix, promotion represents the various aspects
of marketing communication, that is, the communication of information about
the product with the goal of generating a positive customer response.

Decisions:

Promotional strategy (push, pull, etc.), Advertising, Personal selling & sales
force, Sales promotions

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 CHANNELS FOR OIL INDUSTRY

Direct Industrial Agent/Broker Agent/Broker Direct

Channel Distributor Channel Industrial Channel
Channel

Producer Producer Producer Producer Producer

Agents or Agents or
Brokers Brokers

Industrial Industrial
Distributor Distributor

Industrial Industrial Industrial Industrial Government

User User User User Buyer
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THE END AND THANK YOU FOR YOUR
PRESENCE!

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