Vietnam’s Saigon Petroleum is asking via tender 88,000 tonnes of high-sulphur diesel for August-November supplies, less than its normal quarterly intake due to lower domestic demand during the monsoon, traders said.

The state fuel importer requested four 22,000-tonne cargoes from August to November for delivery into Cat Lai during the first 10 days of every month, they said.
“The mini-term tender covers half of Saigon's monthly average demand and the rest will be covered by spot tenders,” said a trader.
Saigon Petroleum imports an average of six 22,000-tonne shipments of 0.5 per cent sulphur gas oil every quarter. Traders said they could have bought some spot cargoes for July though details were not immediately available.
The firm had previously bought via tender 66,000 tonnes of diesel for May to June delivery, or three cargoes over the two-month period.
“Vietnam has cut back on diesel imports because consumption has dropped in the rainy season and domestic supplies are increasing,” said another trader.
The country’s diesel and fuel oil imports normally slow during the rainy season when hydropower generation increases.
The rainy season in southern Vietnam lasts from end-May to end-October, while the northern part experiences wet weather between early July and end-September.
Despite being Southeast Asia's third-largest crude oil producer, Vietnam spends around $3 billion a year on oil product imports as it does not have a major refinery.
The lion’s share of fuel imports goes to Petrolimex, chalking up to 55 per cent, followed by a host of smaller importers, such as Petechim and Saigon Petroleum.