Oil & Gas Industries
Revision of the OMC margins on the card:AHL Research
OGRA has proposed revising the margins for Oil Marketing Companies (OMCs) and dealers. The proposals were submitted after PSO provided operating cost data to review and calculate margins. The OMC margins on MS and HSD are proposed to be increased to PKR 9.22/ltr from the current PKR 7.87/ltr. Meanwhile, the dealer margins on MS and […]
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- OGRA has proposed revising the margins for Oil Marketing Companies (OMCs) and dealers.
- The proposals were submitted after PSO provided operating cost data to review and calculate margins.
- The OMC margins on MS and HSD are proposed to be increased to PKR 9.22/ltr from the current PKR 7.87/ltr.
- Meanwhile, the dealer margins on MS and HSD are proposed to increase from PKR 1.40/ltr to PKR 10.04/ltr.
- The federal government will make the final decision on this matter, and if approved, the increase will be implemented in phases.
- Our analysis suggests that the margin revision will have an annualized earnings impact of PKR 11.63/share, PKR 8.36/share, and PKR 4.39/share on PSO, APL, and SHEL, respectively.
- During 1QFY24, MS sales remained stable at 1.85mn tons, while HSD dispatches decreased by 1% YoY.
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