- Offers valid until March 13; PSO must respond before the deadline expires.
- Agricultural machinery is expected to increase fuel consumption.
- Diesel stocks sufficient for 20 days, demand will increase 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 metric tons and rated 92 RON, as the country works to secure supply 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 of $39 per barrel. The 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 under the rules of the Public Procurement Regulatory Authority (PPRA), which governs public sector procurement in Pakistan. However, authorities noted that strict bidding procedures sometimes contribute to increased procurement costs, particularly during periods of volatility in international energy markets.
Bids will remain valid until March 13, meaning the PSO must respond to bidders and finalize its decision before the deadline expires.
Sources also revealed that the PSO did not receive any offers for a high-speed diesel cargo as traders quoted a CFR premium of around $80 per barrel, which was considered excessively high. Due to daily fluctuations in international oil prices, suppliers were reluctant to submit competitive offers within the validity period.
Meanwhile, Total Parco Pakistan Limited, an oil marketing company, has arranged a cargo of Euro-II specification diesel at a premium of $20 per barrel and is seeking government approval for the import. However, PSO usually imports Euro-V specification diesel, which meets stricter environmental standards.
Officials said Pakistan’s diesel stocks are currently enough 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 from the agricultural sector, authorities emphasized that arranging the supply of diesel at affordable prices will be crucial to ensure uninterrupted agricultural operations and maintain stability in the domestic fuel market.
