SINGAPORE, Oct 29: Pakistan will cut term diesel imports from Kuwait to 200,000 tons for Nov to Dec supplies, down from an initial plan for 300,000 tons, an industry source familiar with the matter said on Wednesday.

Besides, a reduction in term imports, Pakistan State Oil (PSO) had no plans to issue a spot tender to buy gas oil as domestic consumption ebbs during winter, he added.

“There are plenty of gas oil stocks in Pakistan. Demand is going down,” said the source from Karachi.

“During the cold months, road transportation will also be hampered. That will translate to lower diesel demand.” The country is also suffering from the global financial crisis, which puts a lid to its diesel imports.

Pakistan will receive 2.75 million to 3 million tons of term diesel imports from Kuwait this year. The term premium for the 0.5 per cent grade stood at $3-4 a barrel to Middle East quotes on a cost-and-freight basis.—Reuters