Pakistan State Oil (PSO) has floated multiple tenders to procure petroleum products to ensure adequate fuel availability in the next year.
According to a report by a national daily, PSO has invited bids for the supply of three motor gasoline cargos of 45,000 tons each, along with one standard size cargo of high Sulphur fuel oil and low Sulphur fuel oil, in January 2021. The state-owned petroleum company will reportedly also receive one cargo of jet fuel in January.
PSO’s stock position sits at a comfortable level, and no imminent threat reportedly exists that could hamper supplies across the country. PSO has substantially scaled back its crude oil imports since the end of 2017, with the country moderately converting to Liquefied Natural Gas (LNG) to fuel Pakistan’s power sector.
Domestic oil sales during October touched a two-year high, with 1.7 million tons of petroleum products being sold in the country. This statistic reflects an 11 percent increase, backed by a sharp 43 percent upwards movement in high-speed diesel (HSD) demand.
The strong demand for retail fuels stands sufficient to compensate for the 22 percent sequential decline in demand for furnace oil (FO).
Cumulatively for MFY21 (July-October 2020), petroleum products sales increased 9 percent, clocking in at 6.4 million tons as compared to 6 million tons in the same period last year.