Pakistan State Oil is seeking 700,000 tonnes of fuel oil for delivery over April to July, a tender document showed on Friday, about 15 percent less than the volumes it had sought for over February to April. The state-owned firm's fuel oil requirements are lower due to less demand from the power sector and sufficient inventory, a source close to the matter said.
"(The company) is cautious to load too many cargoes as the demand from power sector is down due to it still being cold in April ... and adequate inventory," the source added. Pakistan also faces a circular debt problem. State utilities lose money due to non-paying consumers and low electricity prices and hence cannot pay power generators, who in turn cannot pay gas suppliers, leading to a gas shortage.
In its latest tender, PSO is seeking eight cargoes of 65,000 tonnes each of high sulphur fuel oil for delivery over May to July into Fauji Oil Terminal. It is also seeking a 60,000-tonne cargo of low sulphur fuel oil for delivery into Keamari over April 25 to May 5 and two cargoes of 60,000 tonnes each of the same fuel for delivery over May to July. The tender closes on April 18 and is valid until April 26. PSO last sought 830,000 tonnes of fuel oil for delivery over February to April and bought 640,000 tonnes.