Aramco-Backed GO Hits PSO’s Oil Dominance

By Salman Khan

Saudi Arabia’s oil giant Aramco is said to be eyeing Pakistan’s largest state-owned oil marketing company, Pakistan State Oil (PSO), by reportedly dumping oil after acquiring shares of Go Pakistan.

Gas & Oil Pakistan Limited (GO), whose 40 percent shares were acquired by Saudi energy giant Aramco, has witnessed significant growth, whereas its competitor PSO has lost its substantial market share.

Aramco had acquired a 40 percent stake in Go Pakistan in 2024, and since that time, PSO, along with all other oil industry has been facing a tough time after the regulator-Oil and Gas Regulatory Authority (Ogra), continued granting permission for oil imports despite the fact that Pakistan had enough stocks.

The Oil Companies Advisory Council (OCAC) had been raising its voice against the permission of oil imports granted to Go Pakistan.

There had also been reports that Go Pakistan had been receiving cheaper oil from Aramco and dumping it into the market at a discount rate of Rs 10 per liter despite the fact that the OMCs’ margins stood at Rs 8 per liter.

GO’s Market Share Growth (FY19–1HFY25)

Fiscal Year	Market Share (%)	Key Developments
FY19	7.9%	Consistent presence in the market.
FY20	9.1%	Continued strong performance.
FY21	9.3%	Maintained position.
FY22	8.9%	Maintained position amid industry challenges.
FY23	7.0%	Continued steady performance, slight decline.
FY24	3.3%	Gradual increase in market presence (specifically, the 1HFY24 figure is often cited).
1HFY25	10%	Significant growth post-Aramco partnership.

In the first half of FY25, GO’s combined market share in petrol and high-speed diesel (HSD) sales had made a big leap to around 10%, which was up from 3.3% in the same period the previous year (1HFY24).

This growth has witnessed a big increase in the market share of  HSD, which jumped to 11.1% from 4.4%.

Factors Contributing to GO’s Growth

Go Pakistan’s strategic partnership with Saudi Aramco in May 2024 has provided a bigger opportunity for Go to make a footprint in the Pakistani market.

The special favour by the Ogra to grant permission for the import of high-speed diesel provided an opportunity to dump oil in the local market with higher discounts.

There are recent reports that Ogra had disallowed the import to Go Pakistan and therefore, the company turned against the chairman Oil and Gas Regulatory Authority (Ogra). According to reports, Go Pakistan had written a letter to the Prime Minister Shahbaz Sharif, saying that Chief Ogra was an incompetent man.

Go Pakistan had set up Aramco-branded retail outlets, which gave Go Pakistan more visibility in the domestic market to capture a share of PSO.GO Pakistan Threatens to Halt Oil Quota Lift

These are factors that have enabled Go Pakistan to capture market share of key players in the oil industry, like Pakistan State Oil (PSO) whose share declined in the same period.

PSO’s Market Share Trend (FY21–1HFY25)

While conducting a study during the period under review (FY21 to 1HFY25), Pakistan State Oil (PSO), the state-owned oil marketing company, has witnessed a reduction in market share due to enhanced market competition and dumping products by Go in the domestic market at discount rates.

Decline in PSO Market Share

Fiscal Year	PSO Market Share (%)	Remarks
FY21	47%	Competitive pressures are increasing.
FY22	45%	Slight decline amid rising competition.
FY23	44%	Continued gradual decline.
FY24	43%	There was a noticeable drop as GO and others gained ground.
1HFY25	41.7%	Notable drop as GO and others gained ground.

Even when Aramco had not acquired shares of Go Pakistan, the company has reportedly gained a position in the market through different tactics.

During the period under review, PSO’s market share has witnessed a sharp decline by around 5.3 percent, which stood at 47 percent in FY21 and dropped to 41 percent in the first half of FY25 (41.7%).

Go Pakistan has captured its market share, which made a persistent presence from around 7-9% in FY19-FY23 to 10% in 1HFY25.

Go Pakistan is one component that grabbed its market share. There are other elements too, as PSO has not aligned itself with best practices to survive in competition.

PSO has been running as a state-owned company that operates in a bureaucratic style, and no innovation has been done during the last few years.

Competition is there. So, let the petroleum division find out the competent drivers to run the company. And, the government should also appoint expert and competent professionals on its board of directors with a mandate to give the right input in policy making.

Otherwise, PSO may become a white elephant, like other state-owned corporations and entities.