Pakistan itself is a country of more than 135million people with birth rate 25.89%, with population, is incapable to meet the energy demands by production of approximately 64,000bbl/d.high population have high consumption and consequently develops pressure on country for import. According to one estimate resources potential of Pakistan is 200 trillion cubic feet of gas and 40 billion barrels of oil. We have so far been able to find only a small part of these resources and the remaining potential is more than sufficient to challenge the mind of explorer. Pakistan it self is not sufficient to meet the local demand so after the 1999 reforms in oil sector the govt had taken major measures to increase the private investment (both from local and foreign companies), induce the competition in upstream & downstream sector, Accelerate the investment in infrastructure development, deregulation of prices, to break the monopoly of public entity increase the production of refineries so that finished products import can be reduced. The long term vision for these reforms should be that producer would compete among themselves for large consumers (including distributors); the transmission and distribution companies would offer a transportation service (and not be merchants in addition to being transporters); cross border pipelines would enhance competition as well as quality of service; and an independent regulator would promote competitive market conduct. The ultimate purpose of the new policy reforms will be to ensure that there is no more monopoly exist, companies can induct and operate in the market and they are free to obtain the crude from refinery (with in the country) and also they have free will to import the crude and petroleum products from other countries but subject to the availability of their storage capabilities. Now the issue is that how the benefits of competition and efficiency gains are passed on to consumers in terms of quality, service, safety and regular supply although the prices are fixed throughout the country. vi At present near about seven companies are operating in downstream sector as oil marketing companies. The study is conducted on two companies (PSO (public sector) & SHELL (private sector)) because of easy access to data. In this study a competitor’s analysis model is applied on Pso and Shell Company to test the hypothesis that “Companies that make steady gains in mind share and heart share will they inevitably make gains in market share and profitability”. Here a qualitative approach was used for getting better understanding of respondent’s views and empirical data is collected from employees and customers of PSO & Shell. Data analyses were done on the basis of questionnaire design & on study model. Finding from respondents data shown that petroleum products prices are not identical to preference but only other attributes (quality, inventory, supply, other technical services) can increase the customer preference. It is testified and confirmed by many methods.