Consolidating its position as one of the top retail operators in the country, Al Maha Petroleum Products Marketing Company plan to focus on increasing the market share in the retail segment
Al Maha is primarily engaged in the marketing and distribution of petroleum products viz. gasoline (M91 & M95), diesel, aviation fuel, kerosene and lubricants. Retail sales segment remained the chief revenue earning segment and the company’s long term priority. Retail sales volume remained at almost the same fell as in 2017. Retail sale value has increased by 17 per cent mainly on account of increase in domestic fuel prices during the year.
The company operates 13 filling stations that took the total number of filling stations to 218 at the end of 2018. Five new filling stations, which are in the final stages of completion as at Dec 2018, will be opened in early 2019.
Al Maha is a leading player in the commercial sales segment and it forms the second largest revenue earning segment of our business. This segment remains highly competitive and price sensitive, where superior product delivery and prompt service plays a major role in customer retention and growth. Due to the lower demand from the construction and other industrial sectors of the economy, the company’s commercial sales volume has decreased during the year.
Aviation sales segment has achieved a growth of 33 per cent in sales value in 2018, mainly on account of increased fuel supplies to Oman Air and other commercial airlines at the Muscat International airport. Further increased supplies to major customer in the Government sector also contributed to the growth of the aviation segment during the year 2018. The company plans to tap new airlines which will contribute to the growth of the aviation fuel sales in the coming period.
The lubricants sales segment has also registered a growth of 53 per cent in 2018 over 2017, mainly on account of increased demand for Al Maha branded lubricants, securing new contracts and introduction of new products and services.
Muhammed Nafie is an Assistant Editor at Oman Economic Review.