Pakistan struggles to secure diesel imports as PSO receives petrol cargo bids

Pakistan is facing difficulty securing imports of high-speed diesel as regional tensions and rising global prices disrupt supply routes, even as Pakistan State Oil (PSO) receives bids from international traders for petrol cargoes to maintain domestic fuel supplies, according to reports. 

Officials said PSO has received bids for two petrol cargoes of 55,000 metric tons each with 92 RON under a tender issued amid volatility in global oil markets.

For the first cargo, OQ Trading submitted the lowest cost and freight premium of $17.8 per barrel, followed by Be Energy SA at $22 per barrel and Vitol Bahrain E.C. at $39 per barrel. 

For the second cargo of the same quantity, OQ Trading again offered the lowest premium at $19.5 per barrel, while Be Energy SA quoted $23.5 per barrel.

Officials noted that even the lowest offers were relatively high compared with earlier procurements. The bids were submitted under the Public Procurement Regulatory Authority rules and will remain valid until March 13, by which time PSO must decide whether to accept them.

While petrol cargoes are being secured, authorities said Pakistan has been unable to arrange imports of high-speed diesel. Traders quoted a premium of around $80 per barrel for diesel cargoes, which officials described as too high to accept.

Industry sources said international diesel prices have risen to about $175 per barrel and supplies are becoming difficult to procure as shipments are largely routed through the Strait of Hormuz, where regional tensions have disrupted normal trade flows.

Port authorities confirmed that several vessels carrying petrol cargoes have arrived or are scheduled to reach Port Qasim. The vessel TORM DAMINI discharged 37,000 tonnes of gas oil over about 40 hours and sailed on March 10.

Another vessel, NAVE ATROPOS, carrying 50,000 tonnes of mogas from Singapore, arrived on March 9 and is scheduled to berth on March 11. SPRUCE 2, carrying 55,000 tonnes of mogas from Sohar, Oman, is expected to arrive on March 10 and berth on March 12.

SEA CLIPPER, carrying 34,000 tonnes of mogas from Fujairah, is due to arrive on March 11 and will berth after SPRUCE 2, with discharge expected to take about 30 hours.

PSO said it is taking steps to maintain fuel availability amid volatility in international energy markets. In a statement, the company said it is building stocks and adjusting supply chain operations under directions from the Ministry of Energy.

The company added that its procurement processes remain transparent and competitive and that bids received under the latest tender are being evaluated in line with regulatory requirements.

Officials said local refineries are expected to increase diesel production to help meet domestic demand. However, they warned that demand could rise in the second half of March as harvesting season begins, particularly in southern regions.

Sources said crude oil shipments for local refineries are also arriving to support domestic production. A cargo for Pakistan Arab Refinery Limited has already reached the country and another shipment is on the way. One cargo for Pakistan Refinery has departed for Pakistan, while another shipment for National Refinery is en route from Fujairah.

Separately, Total Parco Pakistan Limited has arranged a cargo of Euro-II diesel at a premium of $20 per barrel and is seeking government approval for its import. Officials said Pakistan currently holds diesel stocks sufficient for about 20 days, but additional supplies may be needed as agricultural demand increases.