Paistan State Oil (PSO).—File Photo

SINGAPORE: Pakistan State Oil is set to buy 55,000 tonnes of low sulphur fuel oil (LSFO) for December delivery, after skipping LSFO purchases in a previous tender, trade sources said on Tuesday.

Galana Petroleum will likely supply the cargo, for Dec 1-5 delivery to the port of Karachi, at a premium of $95.00-$97.00 a tonne above Middle East quotes, the sources said.

PSO issued a tender to buy two 55,000-tonne cargoes of LSFO, one firm and one optional, for delivery over December-February.

The tender closed on Nov 14, with offers to remain valid until Nov 24.

Last month, the company decided not to award the LSFO cargo in its tender after receiving only one offer, and ended up buying only high sulphur fuel oil (HSFO).

It last bought two 55,000-tonne cargoes of LSFO for September-October delivery from Gunvor at a premium of $98.69 a tonne above Middle East quotes.  PSO is expected to issue another tender to buy fuel oil for January delivery soon.