KARACHI: State-owned Pakistan State Oil (PSO) has issued several tenders for the procurement of petroleum products to ensure adequate supply of fuel in the new year, it was learned on Thursday.
PSO has invited bids for the supply of three motor petrol cargoes of 45,000 tons each in January 2021, as well as one standard size cargo each of sulfur fuel oil and low sulfur fuel oil. ۔ The PSO will also receive a cargo of jet fuel in January.
Market sources said that PSO’s stock position is at a comfortable level and there is no danger of smoothing supply across the country.
A few months ago, people were seen running at petrol stations amid lockdown-driven transportation and a sharp drop in domestic oil prices.
The norm began when prices of petroleum products rose sharply.
The PSO has largely measured its fuel oil imports since late 2017 as the country has turned to liquefied natural gas (LNG) to fuel its power sector.
Before switching to LNG, Pakistan was a major importer of fuel oil with an average monthly import of 400,000 to 650,000 tonnes of fuel oil.
In October, domestic oil sales hit a two-year high, with 1.7 million tonnes of petroleum products sold. This reflects an 11% reduction in growth, supported by a sharp 43% reduction in high speed diesel (HSD) demand.
Strong demand for retail fuel was enough to offset the 22% reduction in demand for Furnace Oil (FO).
An annual comparison shows that demand for the black oil segment increased by 46% as the power sector turned to the FO to meet gas shortages in the winter. In addition, there was a slight increase in demand for motor petrol and HSD.
Overall, for 4MFY21 (July-October 2020), sales of petroleum products increased by 9% to 6.4 million tonnes from 6 million tonnes in the same period last year.
The FO increased its volume by 33% to 0.9 million tonnes last year. On the other hand, sales of motor petrol and HSD have increased by 6% and 8% respectively.