# Pakistan State Oil

Pakistan State Oil Company Limited is a Pakistani petroleum public company involved in procurement, storage, marketing and distribution of petroleum and related products. It has a network of 3,689 petroleum filling stations, out of which 3500 outlets serve the public retail sector and 189 outlets serve wholesale bulk customers. Furthermore, it also operates 19 depots, fueling facilities at 14 airports, two lubricant manufacturing facilities and maintains its operations at two seaports. It is the largest oil marketing company (OMC) of Pakistan having the biggest market share. PSO owns the largest storage facilities accounting to nearly 68% of the totally storage capacity of the country. It is also the major fuel supplier to aviation, railways, power projects, and armed forces in the country.

## History

The creation of Pakistan State Oil (PSO) can be traced back to the year 1974, when on 1 January; the government took over and merged National Oil (PNO) and Dawood Petroleum Limited (DPL) as Premiere Oil Company Limited (POCL).
Soon after that, on 3 June 1974, Petroleum Storage Development Corporation (PSDC) came into existence. PSDC was then renamed as State Oil Company Limited (SOCL) on 23 August 1976. Following that, the Esso undertakings were purchased on 15 September 1976 and control was vested in SOCL. The end of that year (30 December 1976) saw the merger of the Premier Oil Company Limited and State Oil Company Limited, giving way to Pakistan state Oil (PSO). A year later, it was listed on the Karachi Stock Exchange.
After PSO's inception, the corporate culture underwent a comprehensive renewal program which was fully implemented in 2004. This program over the years included the revamping of the organizational architecture, rationalization of staff, employee empowerment and transparency in decision making through cross functional teams. This new corporate renewal program has divided the company's major operations into independent activities supported by legal, financial, informative and other services. In order to reinforce and monitor this structural change, related check and balances have been established by incorporating monitoring and control systems. Due to this effective implementation of corporate reform and consistent application of the best industrial practices and business development strategies, PSO has been able to maintain its market leadership in a highly competitive business environment. Pakistan State Oil delivers kerosene, light diesel oil and lubricants to consumers through over 500 distributors all over Pakistan.

## Company overview

PSO controls a market share of over 60% of the total oil market with customer portfolio including dealers, government agencies, autonomous bodies, independent power projects and other corporate customers. It is involved in import, storage, distribution and marketing of a range of petroleum products including gasoline, diesel, fuel oil, jet fuel, LPG, CNG and petrochemicals.
It was founded on December 30, 1976, after Pakistan's government took over the management of Pakistan National Oil (PNO) and Dawood Petroleum Limited, Esso Eastern and renamed into POCL (Premier Oil Company Limited) for marketing of Petroleum Products. PSO is the first public company in Pakistan to pass the PKR 1 trillion revenue mark. Pakistan State Oil has been a member of the World Economic Forum since 2003. Its primary listing is on the Pakistan Stock Exchange.
The State-owned Pakistan State Oil Co. has 3,500 petrol pumps. Where as Cnergyico has 982 petrol pumps, Total Parco Pakistan Ltd. has 800 petrol pumps and Shell Pakistan Ltd. has 766 petrol pumps.
In 2023, PSO inaugurated an aircraft re-fueling facility at Skardu International Airport. This move establishes PSO as the only oil marketing company in Pakistan to extend its services to Gilgit-Baltistan region.
The Government of Pakistan owns 22.47% of the PSO with a total of 51% direct and indirect investment. PSO owns 63.6% of Pakistan Refinery Limited. The company has established a network of incorporated subsidiaries managed from Karachi: Cerisma (Private) Limited, PSO Renewable Energy (Private) Limited and PSO Venture Private Capital (Limited). In 2024, PSO proposed swapping debt for stake in public sector companies including Pakistan International Airlines.

## Group of Companies

PSO has major stakes in following companies:
Pakistan Refinery Limited: A public limited company listed at PSX and located in Karachi. PSO owns 63.6% stake in the company.
Cerisma Limited: A fully owned subsidiary of PSO involved in electronic money institution (EMI) and is located in Sindh, Pakistan.
PSO Renewable Energy Limited: A fully owned subsidiary of PSO engaged in renewable energy sector.
PSO Venture Capital Limited: A wholly owned subsidiary of PSO involved in providing private equity and venture capital fund management services.
Pak Grease Manufacturing Company Limited: An associated company of PSO involved in production and distribution of petroleum grease products. PSO owns 22% equity stake in the company.
Asia Petroleum Limited: The company is engaged in oil pipeline operations in Balochistan. PSO holds 49% of equity stake in the company.

## PSO and PIA

In May 2024, CEO and Managing Director of PSO Syed Muhammad Taha announced that PSO, the state owned oil distributor was also a part of the broader settlement framework to privatize the national flag carrier Pakistan International Airlines.

## Collaborations

In order to provide advanced fuel management solutions, PSO partnered with foodpanda to enable delivery riders to monitor their fuel expenses, get discount on PSO fuel and lubricants, redeem deals, and option of having subsidized accidental insurance. The collaboration was aimed at improving earnings of delivery riders.
Blue LPG initiative was launched by PSO in collaboration with Government of Gilgit Baltistan in 2024. The initiative provides last-mile delivery of LPG to customers along with a competitive price strategy. The cylinders being used in this initiative ensure safety and are lightweight. The initial phase of the project was launched in Hunza.