Pakistan’s Nov fuel oil imports plunge to near four-year low
SINGAPORE: Pakistan’s fuel oil imports declined to a nearly four-year low in November, as the country skipped purchases of low sulphur fuel oil (LSFO) that month, official data showed.
Pakistan bought a total of 304,081 tonnes of fuel oil in November, its lowest volume since January 2009, figures from the Oil Companies Advisory Committee showed.
All the fuel oil bought in November is high sulphur fuel oil (HSFO).
Pakistan State Oil, the country’s main buyer, decided not to award a tender to buy LSFO for November-delivery after receiving only one offer.
Higher hydropower output, boosted by increased rainfall in September-October also resulted in surplus supply from Pakistan’s previous tender cycle, thus lowering demand from utilities. Fuel oil is used mainly for power generation.
Imports are expected to recover next month onwards as electricity demand usually peaks during the winter. PSO is due to close a tender to buy up to 650,000 tonnes of HSFO and 165,000 tonnes of LSFO, for delivery over January-February next year.
The tender closes on Dec. 12, with offers to remain valid until Dec. 21.
The company last bought 55,000 tonnes of LSFO, for delivery over December to January, from Galana Petroleum at a premium of $95.00-$97.00 a tonne to Middle East quotes, on a cost-and-freight (CFR) basis.