LAHORE - Tough competition by the rapidly expanding OMCs and shrinking retail network have forced the Shell to reduce its market share to 12.6 percent from 14.7 percent during the last four years. According to experts, the Shell has experienced 680bps and 440bps decline in market share in Mogas and HSD respectively over the past 4 years while overall market share has declined from 14.7 percent in CY06 to 12.6 percent currently. The key reasons for this are tough competition posed by rapidly expanding OMCs like APL and shrinkage in Shells retail network, they added. Lube sales contribute only 6 percent towards Shells gross sales but 40 percent towards its total gross profit. Market share for Shell in lubes has decreased gradually over the last two years by 500bps to 41.6 percent during 9MCY10. It is expected that it would further decline to reach 39.9 percent by CY15. According to experts, Shell will lose market share in Mogas and HSD segment by 151bps and 100bps respectively, up till CY15. However, the company should benefit from ease in circular debt issue and experience 3 percent growth in sales volume of furnace oil during CY11 and CY12.