Market Scope

Historically, the demand of petroleum products has been increasing at an average rate of 7.5 percent per year (last 4 year 4.25%). The long- term growth estimate has been forecast to range between at 4.5 to 5%. The maximum growth of 9% has been forecast in oil and gas consumption in the transport sector. The consumption of furnace oil however, is expected to double the existing infrastructure in the country is not adequate to bear the burden of the large volumes which are envisaged at the term of this millennium.

For storage, transportation and distribution of the additional quantities of oil, additional facilities on the continuing basis need to be introducing for the existing facilities become so incapable that the consumer bears the cost of shortages and non-availability in the markets. In addition to the injection of adequate and modern facilities, the consumer will look for innovative marketing techniques and safe and friendly products to satisfy their sophisticated demand and concern about pollution and ecological imbalance. The petroleum industry must prepare itself to meet the challenges of free market and discerning consumer of the new era.