PAKISTAN STATE OIL

Project Report On Pakistan State Oil Submitted To: Engineer Mehmood Shah Submitted By Mehreen Afzal (11382) Versha Bai (11924) Submission Date : 11/12/2012

PAKISTAN STATE OIL

Introduction
PSO is the market leader in Pakistans energy sector. Headquartered in Karachi, Sindh Province of Pakistan, it has several state divisions in the different cities in Pakistan, with administrative management business network infrastructure well expanded, built at par with international standards, represents 82% of countrys national energy sources. The company has the largest network of retail outlets to serve the automotive sector and is the major fuel supplier to aviation, railways, power projects, armed forces and agriculture sector. PSO also provides Jet Fuel to Refueling Facilities at 9 airports in Pakistan and ship fuel at 3 ports. The company takes pride in continuing the tradition of excellence and is fully committed to meet the energy needs of today and rising challenges of tomorrow. Pakistan State Oil, the largest oil marketing company in the country, is currently engaged in storage, distribution and marketing of various POL products. The companys current market share of 78.2% in the black oil market and 54.3% share in the white oil market, alone speak volumes about its success.

Vision
To excel in delivering value to customers as an innovative and dynamic energy company that gets to the future first.

Mission
We are committed to leadership in energy market through competitive advantage in providing the highest quality petroleum products and services to our customers, based on:

PAKISTAN STATE OIL

Professionally trained, high quality, motivated workforce, working as a team in an environment, which recognizes and rewards performance, innovation and creativity, and provides for personal growth and development.

Lowest cost operations and assured access to long-term and cost effective supply sources Sustained growth in earnings in real terms highly ethical, safe environment friendly and socially responsible business practices. Market leader providing the highest quality petroleum products and services to its customers.

Products
There are some products, which PSO offer to its customers and these products are: 1) Gaseous Fuels 2) Lubricants 3) Retail Fuels

1) Gaseous Fuels
CNG: PSO was the first Oil Marketing Company to commission CNG facility. Over the years, PSO have come a long way with dedicated and sincere efforts and today we have 253 PSO CNG stations in operations in more than 34 cities and town across Pakistan. PSO is continuously striving to serve its customers.

2) Lubricants

Automotive Lubricants

The automotive oils category entails automotive greases, brake fluids, diesel engine oils, gear fluids, motor cycle and passenger car oils

3) Retail Fuels
Retail Fuels is one of the core business segment of PSO, with its finest quality brands Premier XL, Green XL and E-10. The retail team at PSO works relentlessly to fulfill the needs of the automotive sector. With more than 3,500 retail outlets nationwide; PSO serves approximately 2.8 million retail customers daily. PSO Retail department is spread across the nation with 14 division offices. All divisional offices and retail outlets across the country are linked to the head office through state-of-the-art

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enterprise resource planning software SAP.

The product which we have chosen that is the retail fuel and the product Brand name is Premier Xl

PREMIER XL
Premier XL petrol with its multifunctional additive cleans fuel injectors, removes combustion chamber deposits and provides corrosion control.

OPERATIONS OF PREMIER XL
Material purchases:
PSO company purchases products through: 1) Local purchases 2) Import

Local purchases:
PSO makes local purchases from PRL(Pakistan refinery limited) and NRL (National refinery limited).

Import:
PSO imports refine oil Only from Kuwait based on a long term contracts.

Inventory:
To refine oil is transported from Karachi to all over the Pakistan in 22 storage /supply point.

Distribution:
The oil is distributed from these points to directly to the petrol pumps through authorized dealers / contract dearlers.They have 40 sales offices.

PAKISTAN STATE OIL

PAKISTAN STATE OIL

Problems
These are some majors problem which PSO is facing: 1) Inaccurate forecast 2) Quality 3) Petrol pump infrastructure problems

Inaccurate forecast:
PSO operates on long term contracts but its sales departments forecast higher sales in coming period then PSO has to go for random purchases and its before cost are inaccurate the company may face several issues.if the forecast are higher the company faces storage problems and if the forecast are lower than the actual sales the company run out of supply.

Quality:
One of the major problems for PSO is maintaining the product quality across the country. Sometimes the petrol pump in remote areas of the sindh and Baluchistan mix up Iranian smuggled oil with PSO Premier xl. Iranian smuggled oil being of low quality messes up PSOs brand in those areas

Petrol pump infrastructure problems

PSO has a dedicated team to ensure a standardized petrol pump infrastructure. The petrol pumps in many rural areas of the country do not come up with the standard format which is a major problem to PSO to deal with.

CRM (customer relationship management)

PSO maintains a call center to deal with retailer and customers issues. PSO has developed the structure area management system which is headed by the area

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incharge, each is responsible for fifteen to twelve petrol pumps nearest to it.

This areas incharge are responsible for handling the issues of assigned petrol pumps and they acts as a medium of communication up and down the hierarchy.

Conclusion
The overall operation is concluded as below: PSO purchases from local refineries and also imports refined oil from Kuwait, supplies the oil to its 22 storage locations across the country. It then distributes the oil from its storage points to all petrol pumps of the country through tankers contracted by the authorized dealers of the company. It has its area incharges all over the country who are responsible to handle and deal with the problems if the petrol pumps nearest to them

References
http://www.psopk.com/about_us/vision_mission_values.php http://www.google.com http://www.psopk.com/

Address: PSO House, Khayaban-e-Iqbal, Clifton, P.O.Box 3983, Karachi 75600, Pakistan UAN: 021-111 111 PSO (776) Tel: (92 21) 99203866-85 Fax: (92 21) 99203835 Ta'aluq Careline: 0800-03000 Email: Taaluq@psopk.com