Karachi, May 28, 2012 (PPI-OT): Attock Oil Refinery (ATRL) and National Refinery (NRL) have raised the prices of lube base oil by PkR 3.50 per litre.
According to Alfalah Securities Limited, base oil is used as a raw material to make lubricants of different grades. NRL produced 200,898 M.Tons of lubricant oil in FY11 which is the only lube refinery in Pakistan while the remaining demand is met through imports. With the increase in prices of base oil, the profitability of the refineries would improve mainly for NRL. Alfalah Securities Limited recommends a BUY on NRL with target price of PkR 342.