KARACHI, May 8: The Pakistan State Oil (PSO) has saved $850,000 foreign exchange in import of 275,000 tons HSFO and 75,000 tons of LSFO.

According to a press release the PSO had invited tenders for the supply of HSFO and LSFO and the tenders were opened on May 2 in presence of representatives of suppliers/traders.

The bids were very competitive resulting in lower premiums as compared to term contract premiums. There were 11 participants for the PSO tender and six participated in the Japanese tender.

The premiums were identical in both tenders. HSFO premium ranged from $10.98 per ton to $19.95 for M/s Fal Oil and M/s Vitol respectively, against the term price of $12.88 per ton. The bids for LSFO ranged from $28.44 per ton to $45 per ton for M/s Fal Oil and M/s Hascombe Ltd respectively against our term premium of $34 per ton.

Based on the lowest premium M/s Fal Oil was awarded 3 firm and 1 optional cargo for HSFO and 2 firm and 1 optional for LSFO. M/s Bakri was awarded one optional cargo of HSFO. As a result of this tough competition between suppliers/traders $850,000 has been saved by the PSO.