- Offers valid until March 13; PSO must respond before the deadline expires.
- Agricultural machines are expected to increase their fuel consumption.
- Diesel stocks sufficient for 20 days, demand increasing with the harvest season.
Amid tensions in the Strait of Hormuz, Pakistan State Oil (PSO) has received offers from international traders for two cargoes of gasoline, each weighing 55,000 tonnes with a rating of 92 RON, as the country strives to secure its supplies amid fluctuating global fuel prices.
Sources indicate that for the first cargo, OQ Trading submitted the lowest bid with a cost and freight premium (CFR) of $17.8 per barrel. Be Energy SA offered a CFR premium of $22 per barrel, while Vitol Bahrain EC quoted the highest premium at $39 per barrel, News reported.
For the second shipment of the same quantity, only two bidders participated. Once again, OQ Trading emerged as the lowest bidder, offering a CFR premium of $19.5 per barrel, while Be Energy SA submitted a bid of $23.5 per barrel. Officials noted that the lowest bids for both cargoes are still considered relatively high.
Officials said the bids were received in accordance with the rules of the Public Procurement Regulatory Authority (PPRA), which governs public procurement in Pakistan. However, authorities have noted that strict bidding procedures sometimes contribute to higher procurement costs, particularly during periods of volatility in international energy markets.
Bids will remain valid until March 13, meaning OPS will have to respond to bidders and finalize its decision before the deadline expires.
Sources also revealed that the PSO did not receive any bids for a high-speed diesel cargo ship, with traders quoting a CFR premium of around $80 per barrel, deemed excessively high. Due to daily fluctuations in international oil prices, suppliers were reluctant to provide competitive offers during the validity period.
Meanwhile, Total Parco Pakistan Limited, an oil marketing company, has arranged a cargo of Euro-II specification diesel at a premium price of $20 per barrel and is seeking government approval for import. However, the PSO generally imports Euro-V specification diesel, which meets stricter environmental standards.
Officials said Pakistan’s diesel stocks are currently sufficient for about 20 days, but demand is expected to increase next month with the start of the harvest season, when agricultural machinery significantly increases fuel consumption.
Given the expected increase in demand in the agricultural sector, authorities stressed that ensuring the supply of diesel at affordable prices would be crucial to ensure the continuity of agricultural operations and maintain the stability of the national fuel market.
