July-December: Two dozen firms burst on oil selling bandwagon
KARACHI: About dual dozen firms have jumped on a fuel sale business in a final 6 months overdue to a poignant expansion and loose conditions that are partial of apropos a bone-fide oil selling company.
The Oil and Gas Regulatory Authority (Ogra) licenced 21 new firms during July-December 2016 to build oil storage comforts in areas where they have designed to open petrol pumps.
The series of new licences is startling gripping in perspective a management had released an roughly equal series of such licences (20) in a final 70 years.
The new companies are estimated to be investing Rs10.5 billion to build a designed storage comforts in a subsequent 3 years.
It is nonetheless different as to how most storage ability would be combined to a complement in a given timeframe.
Ogra, however, pronounced “the attention has combined 140,347 tons of storage both for MS {petrol} and HSD {High Speed Diesel} in a complement with an estimate investment of Rs14.4 billion given a send of regulatory functions to Ogra from a Ministry of Petroleum and Natural Resources {in 2006}.”
“The {21 new} companies would be released licences of bone-fide oil selling companies after they make accessible a due storage facilities,” pronounced Imran Ghaznavi, a Ogra spokesman.
An researcher pronounced a new companies are fasten a zone due to poignant swell in direct for petroleum products and decrease of conditions to turn an oil selling association in a country. The Pakistan Bureau of Statistics (PBS) reported a 50% boost in a import of petroleum products in a 6 months when Ogra released new oil storage construction licences.
Pakistan has alien 11.76 million tons of polished and wanton oil during July-December 2016 as compared with 7.82 million tons in a same duration in 2015, according to a PBS.
Imported oil meets around 75% of a country’s demand, while a remaining is met by internal production.
A internal brokerage residence reported a other day that oil selling companies sole a sum of 15.17 million tons in a initial 7 months (July 2016 to Jan 2017) of a stream mercantile year 2017 – a year-on-year expansion of 17%.
Moreover, in 2010, a afterwards supervision exorbitantly loose a criteria for substantiating a new oil selling company. Accordingly, a new association in a creation now might flog start a tour with smallest Rs100 million equity in hands and Rs500 million investment size.
Ghaznavi pronounced Ogra has released selling licences to 4 companies given Jul 2016. “They have met a simple criteria of substantiating storage facilities. Now, they would start opening petrol pumps in a areas and provinces where they have assembled a storage infrastructure,” he said.
Published in The Express Tribune, Feb 9th, 2017.
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Article source: https://tribune.com.pk/story/1321081/july-december-two-dozen-firms-jump-oil-marketing-bandwagon/