Dawn reported that Pakistan bought more than 500,000 tonnes of fuel oil for the third consecutive month this year as power generation needs peak during the summer.

According to figures released by the Oil Companies Advisory Committee, total fuel oil imports for June stood at around 509,000 tonnes, 6% lower than the previous month. Imports of high sulphur fuel oil fell by around 5% to 451,000 tonnes while low sulphur fuel oil purchases were 15% lower at 58,000 tonnes.

A trader said that it’s a seasonal thing. Pakistan usually buys more for the summer as there is less hydropower output and they import less during the monsoon.

Industry sources said that hydropower constitutes the bulk of electricity generation but Pakistan relies on fuel oil powered plants during the summer when there is less rain.

Fuel oil imports are expected to be lower in July when the monsoon usually starts. Pakistan’s main buyer, Pakistan State Oil has secured 490,000 tonnes of HSFO and LSFO for delivery over July to September. It has also issued a term tender to seek 2 million tonnes of HSFO for a period of 12 months. The tender closes on August 7th 2012 with offers to remain valid until August 18th 2012.

Source - Dawn.com

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