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October 2, 2019

PSO invites bids from oil suppliers

Business

October 2, 2019

KARACHI: Pakistan State Oil (PSO) has invited bids from international suppliers for supply of 270,000 MT of motor gasoline (mogas) and 40,000 MT of jet fuel (JP-1) to ensure ample availability of fuel in December.

According to the details, the oil marketing company sought the delivery of fuel oil on cost and freight basis. The company will receive three mogas cargos of 45,000 MT each in the first half of December, while three more similar cargos would arrive in the second half of December 2019.

Similarly, four JP-1 cargos of 10,000 MT each would arrive in the last month of the year. The bids will be opened on November 11 at the PSO House.

Market sources said PSO’s stock position was at a comfortable level and there was no threat to smooth supplies across the country.

Motor gasoline accounts for nearly 49 percent of the total petroleum sales in the country. Its consumption clocked in at 0.63 million tons in August, up three percent over the last year on increase in price of its substitute compressed natural gas. Mogas consumption was recorded at 5.1 million tons during the first eight months of 2019.

Oil import bill posted a hefty decline of more than 26 percent year-on-year in the first two months of the current fiscal year. Petroleum group imports dipped 26.75 percent to $1.93 billion during the July-August period, with the largest drop coming from crude oil, down 55 percent in value and a 46.36 percent in volume to 0.9 million tons.

The cost of petroleum products’ imports dipped 16.42 percent during the first two months whereas a 7.84 percent decline was recorded in terms of the total quantity imported; bringing the total down to 1.57 million tons.

The state-owned oil company has largely scaled back its fuel oil imports since the end of 2017 as the country turned to liquefied natural gas (LNG) to fuel its power sector. Before turning to LNG, Pakistan was a major importer of fuel oil with monthly imports averaging at about 400,000 to 650,000 tonnes of fuel oil in 2017.

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