SINGAPORE: Kuwait Petroleum Corp (KPC) and Pakistan State Oil have finalised the term price for their July-December gasoil contracts, industry sources said on Wednesday.

PSO will pay a premium of about $2.80 a barrel above Middle East quotes for the cargoes, nearly 10 per cent more than its January-June term contract with KPC which was set at a premium of about $2.60 a barrel, the sources said.

Volumes will remain the same at about 1.5 million tonnes of 0.2 per cent sulphur gasoil, they added.

KPC has been a key supplier of gasoil to Pakistan for more than three decades, and meets 75-85 per cent of the country’s requirements.

Both companies signed a three-year deal at the start of this year for the supply of gasoil, and usually negotiate premiums every 6 months.

PSO also intermittently releases spot buy gasoil tenders throughout the year, most commonly during seasonal peak demand periods due to agricultural activities.

It recently issued a tender after more than a year seeking two cargoes of 55,000 tonnes each of 0.5 per cent sulphur gasoil for delivery over June and July.