Oil Marketing Companies: Retail Oil Industry Grew by Massive 3x in Last 5 years - By Sherman Research

<p></p><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Size of retail oil market in Pakistan grew by massive 3x in last 5 years to Rs146bn, thanks to significant increase in per liter OMCs margin over the last few years (see graph 1). This is the reason why global firms are eying Pakistan&rsquo;s oil retail market. Unfortunately, consistent fall in international oil prices over the last 4 years diluted this impact as OMCs faced huge inventory losses in retail business which eventually forced few small firms to exit due to liquidity constraints.</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Now with oil prices staying at lower levels, outlook for big OMCs is promising as availability of low cost financing, healthy margins and adequate storage network...