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Pertamina buying to lift Indonesia’s gasoline imports

  • Market: Oil products
  • 14/08/20

Indonesia's gasoline imports in August are expected to increase to 226,000-258,000 b/d, higher than initial forecasts of 161,000-194,000 b/d after state-owned Pertamina emerged to buy spot cargoes.

Imports were initially expected to remain low at 5mn-6mn bl in August with most of the supplies coming from term suppliers. But a spot tender seeking about 1.1mn bl of gasoline towards the end of July pushed forecasts higher, said market participants.

Pertamina sought the 1.1mn bl despite skipping spot tenders since April, after having skipped spot buying since April as government restrictions limiting car use led to an unprecedented slump in demand.

Pertamina issued a tender on 28 July to buy five 200,000-250,000 bl 92R and 88R gasoline cargoes for loading from Singapore or Malaysia during 10-28 August. The price was around $0.20-0.60/bl for the 92R cargoes and a $0.40/bl discount for the 88R. The pricing basis for both grades will be on Argus 92R spot assessments or Platts 92R spot assessments, whichever is lower.

Indonesia, Asia-Pacific's largest gasoline buyer, has reduced its imports sharply this year as the government imposed travel restrictions to curb the Covid-19 outbreak. Indonesia bought around 284,000 during January-May, down from about 348,000 b/d for the same period a year earlier, according to GTT data.


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