PSO Petrol Cargo Bids Rise as Strait of Hormuz Tensions Impact Fuel Supply
Pakistan is moving to secure fuel supplies as global markets remain volatile. Recently, PSO petrol cargo bids increased amid tensions in the Strait of Hormuz.
Pakistan State Oil received offers from international traders for two petrol cargoes. Each shipment contains 55,000 metric tons of petrol with a 92 RON rating. However, officials say the offered premiums remain relatively high.
International Traders Submit Bids
Several global trading firms joined the bidding process. For the first cargo, OQ Trading submitted the lowest bid. The company offered a Cost and Freight premium of $17.8 per barrel. Meanwhile, Be Energy SA proposed a premium of $22 per barrel. In contrast, Vitol Bahrain E.C. submitted the highest bid at $39 per barrel. The second cargo attracted fewer bidders. Again, OQ Trading offered the lowest premium at $19.5 per barrel. Be Energy SA followed with a $23.5 per barrel offer. Despite this competition, officials still consider the bids expensive.
Procurement Rules and Market Pressure
Authorities received the bids under rules set by the Public Procurement Regulatory Authority. These guidelines ensure transparency in public sector purchases. However, strict tender procedures sometimes increase procurement costs. This issue becomes more noticeable during unstable global energy markets. As a result, Pakistan may pay higher premiums during supply disruptions. Officials also confirmed that the bids remain valid until March 13. Therefore, PSO must finalize its decision before the deadline.
Diesel Supply Concerns
Meanwhile, traders did not submit bids for high speed diesel cargo. Suppliers reportedly quoted premiums close to $80 per barrel. Authorities considered these rates too high.
Because of this, PSO could not proceed with the diesel purchase. Price volatility in international markets also discouraged traders from offering competitive bids. At the same time, Total Parco Pakistan Limited arranged a diesel cargo independently. The company secured Euro-II specification diesel at a $20 per barrel premium and is awaiting government approval. PSO usually imports Euro-V diesel, which follows stricter environmental standards. Nevertheless, officials continue to monitor the situation closely.
Rising Demand From Agriculture
Pakistan currently holds diesel stocks for about 20 days. However, demand will likely increase soon. The harvesting season begins next month. During this period, tractors and farm machinery consume more fuel. As a result, diesel demand often rises sharply. Officials stress that stable and affordable supplies remain essential. Reliable fuel imports will help farmers operate machinery smoothly and support Pakistan’s agricultural output.
