Oil Products: Pakistan to buy 875,000 tons

PSO has already bought more than 500,000 tons of fuel oil and gasoline for July-September arrival.

SINGAPORE:

Pakistan is set to buy 875,000 tons of oil products, short of an initial tender of just over a million tons, traders said on Thursday.

Pakistan State Oil will likely buy seven gasoline cargoes, eight high sulphur fuel oil cargoes and two low sulphur fuel oil cargoes to be delivered into the port of Karachi, they added.

The company has already bought more than 500,000 tons of fuel oil and gasoline for July-September arrival. Fuel oil is used for power generation in Pakistan and demand usually peaks during the summer, when less hydropower output means the country has to turn to fuel oil-powered plants.

Gasoline use in August is expected to be high due to more travel during the Muslim fasting month of Ramazan. Demand for both products is expected to ease after summer when monsoon season kicks in.

Published in The Express Tribune, July 27^th, 2012.