SERIOUS ENERGY CONSERVATION MEASURES NEEDED
INTERVIEW KALIM A SIDDIQUI: PRESIDENT PETROLEUM MARKETING BUSINESS BYCO PETROLEUM PAKISTAN LTD.
Apr 25 - May 1, 2011
The unabated rise in international oil prices on account of disturbance in the Middle East and disturbances in Libya recent could be disastrous particularly for the developing economies if not controlled effectively.
There is a fear that the disturbance could infect other oil producing countries in the Middle East that should be taken as a serious challenge for the opinion leaders in the best interest of the poor and developing economies.
Kalim Siddiqui agreed that the horrible oil situation could be described as an oil tsunami for the developing countries as the crude oil prices could go beyond $200 or more and in case if the crude prices continue to move up that would also weaken Pak rupee as well that means that the candle of economy would be burning from both end-from one end due to rising crude oil prices and the other end because of weakening of rupee against international currencies.
Referring to the increase in petroleum and electricity prices, Kalim said that as a matter of fact in today's world the cost of living revolves around energy prices. Whenever there is an increase in energy prices it has a multiplier effect and cost of living goes up accordingly. In this scenario, inflation has adversely affected the purchasing power of the common person. It is a serious concern that due to fast erosion of purchasing power even basic and essential food items are slipping out of the reach of the people, which consequently reflected in rising number of street crime and worsening of law and order situation in the society in general.
When asked to suggest solution of the deteriorating energy crisis, Kalim regretted that as a nation we lost many opportunities and especially precious time when things could have been done at an affordable cost without any political or international interruption. The situation calls for concrete steps to address the energy crisis instead of looking into ad-hoc or cosmetic solutions.
Since the government of the day is also facing financial constraints hence it has not many options to deal with the situation except taking some harsh decisions, however the room for improvement always remains and the crucial energy crisis prevailing in the country calls for immediate adoption for energy conservation plans. Whatever stock of energy we have should be used more judiciously in accordance with the genuine need of energy. What the energy mix of the country needs is to reduce the cost and the most important aspect is to rationalize duties on energy mix, which he said, have exceeded to what it was suggested in the last budget. The government should also pass on some benefits to the people to reduce burden due to rising inflation, taxes on the petroleum products needed to rationalize as they did in case of refineries by tightening of their margin to an extent where refineries are finding it difficult to operate.
Kalim also pointed out towards the taxation regime and suggested that the government have to take some realistic measures to broaden the tax net rather than squeezing of the identified taxpayers. In this respect, he cited the example of agriculture income which is so far completely exempted from taxes. They are also needed to share the burden at this point of time when the nation is passing through the most crucial time of its history.
He however said that every country is providing subsidies to the essential industries like fertilizer, pesticides or other things required in agriculture. However, the money generated by any sector any means or individual earnings should be brought under tax net to provide relief to the people in real sense.
As far as an energy sector is concerned, there is a dire need to do away with inefficiencies of the energy sector. Explaining the inefficiencies in the energy sector, he referred to much talked about line losses in the electricity or gas transmission network that has to be done away with to make life easy for the general consumers because losses are generally covered through inflated bills. We have to minimize the furnace oil based power generation, as it's a major contributor of escalating price of power generation.
In fact, he stressed, this is time to maximize utilization of alternative energy resources for power generation such as hydropower, wind power, coal based power and even nuclear power generation rather than to go for costly furnace oil power generation and finally to go for power conservation and try to get away from unbearable cost of power generation through rental power generators, he observed. He also pointed that if all these measures to go for use of available alternative energy resources are not taken seriously, the ever increasing cost of crude oil will play a havoc with the economy in general and energy sector in particular, he sounded the note of warning.
Kalim A. Siddiqui is President of Petroleum Marketing Business in Byco Petroleum Pakistan Limited (BPPL). Mr. Siddiqui has taken this responsibility from 1st April 2009 to lead Byco's Petroleum Marketing Business initiatives to become a dominant market player.
Mr. Siddiqui, holding a Bachelor in Chemical Engineering and a Masters in Chemistry, has broad-based, global experience in business development, system re-engineering and streamlining processes, managing supply chain, marketing and sales, overall operations management in the oil industry for over 30 years holding various senior management positions.
He was in PSO before joining Byco Group, where he served for nearly eight years in different management roles. As the Managing Director, his last position in the company, he ensured continuity of supply chain to meet country's fuel needs for private and public sectors despite difficult economic conditions.
Mr. Siddiqui has served as Chairman Oil Companies Advisory Committee (OCAC) and has held directorships in various reputable companies, & professional and educational institutes including Pakistan Refinery Limited, Pak-Arab Pipeline Company, Asia Petroleum Limited, Agrimall, Pak-Grease Manufacturing Company Limited, Petroleum Institute of Pakistan, Pakistan Advertisers Society, and Lahore University of Management Sciences.
Before joining PSO, he served in Caltex (now Chevron) for 20 years locally as well as internationally. His international assignments were located in the USA, Vietnam, and Australia. In Caltex, he has dealt with fuel and lube marketing, lube product development and production, LPG marketing, and product engineering activities. He also worked for three years in the UK with Howden Engineering Company, Burmah-Castrol Refinery, North West Water Authority, and A.P.V Company before coming to Pakistan in 1980.
PETROLEUM MARKETING BUSINESS
Byco Petroleum Pakistan Limited (BPPL) has entered the petroleum-marketing sector with a renewed vision. With a blend of high quality human resource, newly-designed retail outlets and a fresh brand identity, Byco Petroleum Marketing is an emerging leader in the oil marketing sector of Pakistan's economy.
Byco commenced the sale of petroleum products with the establishment of its first retail outlet in July 2007, and has completed 196 retail outlets in a short time. We aspire to further add considerable outlets in the current fiscal year, thereby, expanding our network to consolidate our market presence across the country from Karachi to Kashmir.
Byco has been able to carve a niche for itself and maintain market share in a highly competitive environment. Byco is the only OMC, which has grown at a staggering rate of 208 per cent in the last fiscal year with a growth of 390 per cent in retail sales and 303 per cent in turnover.
Though in its infancy stages, Byco Petroleum Marketing has already leaped to the sixth position amongst the industry players and has been maintaining it. With a cumulative market share of 2.6 per cent (upto March 2011) in liquid fuels, Byco Petroleum Marketing has grown almost 50 per cent in terms of market share as compared to same period last year due to its penetrative marketing strategy in all segments.
Apart from retail sales, Byco Petroleum Marketing's ever increasing and diversified consumer portfolio is also growing on fast track and is expanding into major segments. Furthermore, Byco Petroleum Marketing has unique presence in the international market by supplying specialized diesel (Winterized Diesel) and bunkering fuels (RMG 380) in growing foreign markets.
Supply chain mechanism has been strengthened with availability of storages across the country in order to meet marketing requirements at various locations. Moreover, with entry into the White Oil Pipeline the company is supplying refinery's product across the country more efficiently. Moreover, Byco Petroleum Marketing accomplished the milestone of importing its first shipment of diesel oil and furnace oil during the last year.
We envision being among the top three OMCs of the country in the near future, therefore maximizing thrust on customer reach, and providing innovative fueling and energy solutions to customers, in and outside Pakistan.
An essential step in this regard was the launch of the new Byco brand. An unparalleled and unique brand architecture exercise was performed by international brand consultants to position Byco over and above its competition. Through this exercise we aim to strengthen our corporate image by infusing brand-strategy elements allowing us to compete locally and globally.
We have started marketing quality Byco-branded lubricants that provide superior protection and improved engine life. We aim to market one of the best lubricants range covering both Automotive and Industrial products.
Byco has started sales of LPG in branded cylinders entering the bulk sales market, and also plans to provide LPG auto-gas facilities at retail stations, providing greener energy options to customers and a cleaner environment. It would be a first in promoting a convenient and safer method of LPG sales.
Apart from the marketing sector, Byco will soon be recognized for the largest petrochemical complex and oil refining unit, both of which once completed will be inimitable and state-of-the-art. Moreover, the company is also planning to put up one of its kind Sub Sea Pipeline known as Single Point Mooring (SPM) and Isomerization unit which is a first in the country and would greatly add value to the oil industry as a whole.
Apart from providing customers with unique products and services, the company also realizes its responsibility towards serving the community and working for the betterment of the society in general. The concept of Community Development Plan at Byco highlights the building of active and sustainable communities based on social justice, mutual respect, and perception of a common interest. The Company's Community plan though in its nascent stage has started to make a visible difference to the community and has improved relationships with them.
Byco wants to be a source of advancement in the industry and soon to be counted amongst top industry leaders. We strongly believe Byco has the capability to contribute towards the country's progress and represent Pakistan on the global business arena.