Oil Stocks: PSO to make inventory gains
Abn-e-Ameer
Pakistan State Oil (PSO) is likely to make dividends with higher oil stocks following a possible hike in prices effective from May 1, 2021.
Oil and Gas Regulatory Authority (OGRA) had proposed an increase in oil prices up to Rs 6 per liter. The government is likely to hike the prices of petrol and high-speed diesel (HSD) by Rs 6 per liter each. If prices are up, oil inventory will help the industry to make dividends.
What is Oil Price Today
The price of oil today is higher. The price of petrol stands at Rs108.56 per liter, high-speed diesel Rs 110.76. With the proposed increase, the prices of these two products are likely to witness a hike of Rs 6 per liter. This will provide an opportunity for the industry to make gains due to higher oil stocks.
Oil Companies’ Stocks
Several oil marketing companies are marketing petroleum products in Pakistan. They are maintaining a total stock of 501,198 metric tons.
At present, Pakistan State Oil (PSO) is a leading marketing company in Pakistan. This is a state-run company that captures a market share of 60 to 70 percent. The recent financial results show that it had gained market share with robust growth.
This will be a leading company to make dividends from the oil stocks. It is currently maintaining an inventory of 182,753 metric tons of petrol. In addition to this, it is maintaining a stock of 158000 high-speed diesel (HSD). The sowing season of the crop is going to start which will result in higher consumption of diesel in the agriculture sector.
Shell Pakistan
This is a foreign company, operating in the marketing of petroleum products in Pakistan. This is a second company that is maintaining higher oil stocks at 54800 metric tons. This will also make inventory gains due to a possible increase in prices.
Other companies included TPPL, Byco, BE, HPL, APL, Puma and Go who are maintain stock at 15000, 26500, 64500, 60645, 26000, and 39000 metric tons respectively.
Refining of crude oil
Five refineries in Pakistan are refining crude oil. They include Parco, PRL, NRL, ARL, and Byco. They import crude oil and process it to make refined products.
They are also holding substantial oil stocks to make gains following a hike in prices. They are maintaining stock at 198000, 56000, 65000, 53000, and 37000 metric tons respectively. The total volume of inventory stands at 411000 metric tons.
