Pakistan State Oil Co. received bids from international traders to supply two petrol cargoes as the country moves to secure fuel imports amid tensions around the Strait of Hormuz and heightened volatility in global energy markets.
The state-run fuel importer sought offers for two cargoes of 55,000 metric tons each of gasoline with 92 Research Octane Number (RON), according to officials familiar with the process.
For the first cargo, OQ Trading submitted the lowest bid with a cost-and-freight premium of $17.8 per barrel. Be Energy SA offered a premium of $22 per barrel, while Vitol Bahrain E.C. quoted the highest premium of $39 per barrel.
For the second cargo of the same size, only two companies submitted bids. OQ Trading again emerged as the lowest bidder with a premium of $19.5 per barrel, while Be Energy SA offered $23.5 per barrel. Officials said the lowest bids for both cargoes remain relatively high compared with typical market levels.
The bids were received under rules set by the Public Procurement Regulatory Authority, which governs public-sector procurement in Pakistan. Officials said the strict tendering framework can sometimes lead to higher procurement costs during periods of heightened volatility in international fuel markets.
PSO must decide on the offers before March 13, when the bids expire.
The company also failed to attract any bids for a planned high-speed diesel cargo shipment after traders quoted a cost-and-freight premium of about $80 per barrel, which officials considered excessive. Suppliers were reluctant to lock in competitive prices amid daily fluctuations in global petroleum markets, according to people familiar with the matter.
Separately, Total Parco Pakistan Ltd. has arranged a cargo of Euro-II-grade diesel at a $ 20-per-barrel premium and has sought government approval to import it. PSO typically imports Euro-V diesel, which meets stricter environmental standards.
Pakistan’s diesel inventories are currently sufficient for about 20 days, officials said. Still, demand is expected to rise next month with the start of the harvesting season, when agricultural machinery significantly increases fuel consumption.
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