Platts proposes to raise FOB Singapore RON 92 gasoline volume from Jan 2, 2025

Platts, part of S&P Global Commodity Insights, is proposing to change the methodology of its FOB Singapore RON 92 gasoline assessment to reflect a minimum volume of 100,000 barrels and a maximum of 200,000 barrels, with effect from Jan. 2, 2025.

Platts assessments for FOB Singapore RON 92, RON 95 and RON 97 gasoline currently reflect the value of cargoes of a minimum of 50,000 barrels and a maximum of 150,000 barrels each for loading 15-30 days forward from the date of publication.

The proposal follows a consultation process started in June to seek market feedback on the volume sizes reflected in Platts FOB Singapore RON 92, RON 95 and RON 97 gasoline assessments.

Details of the earlier consultation can be found here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/061324-platts-opens-consultation-on-fob-singapore-gasoline-clip-sizes .

The proposed change to the RON 92 volume size reflects feedback gathered during the consultation and changes to prevailing trading patterns in the region.

Platts understands that more regional gasoline buyers are now seeking larger clip sizes of 100,000 barrels or more of RON 92 gasoline on FOB Singapore, Malaysia and Indonesia basis. Rising freight costs due to higher freight rates for coastal tankers, and an aging coastal tanker fleet for gasoline, mean that the marginal clip size in the market is no longer reflecting 50,000 barrels for the lowest RON gasoline grade.

Invites additional feedback on RON 95 and RON 97 methodology

The feedback gathered during the consultation process on RON 95 and RON 97 was more mixed, and Platts is not at this time proposing any change to the current methodology, which is based on a minimum of 50,000 barrels and a maximum of 150,000 barrels, with precedence given to the smaller volume in the event of any conflicting bids, offers or trades on different clip sizes.

For the higher RON gasoline grades, Platts understands that a critical mass of disports in the region continues to import 50,000 barrels for a single loading on smaller coaster tankers. At the same time, some feedback highlighted the desirability of reflecting the same volume size across the three grades, to allow the inter-RON spreads to reflect the value of octane as closely as possible.

Platts therefore invites further feedback on its FOB Singapore RON 95 and RON 97 gasoline volume sizes. Specifically, considering the proposed change to RON 92 volume sizes, Platts seeks feedback on the following possible actions for the higher-octane grades:

a. Leave the current methodology unchanged.

b. Raise the volume size for RON 95 and RON 97 in line with the proposed change to RON 92.

c. Leave the current volume sizes for RON 95 and RON 97 unchanged, but consider the 100,000-barrel clip size to take precedence in the assessment process.

The following FOB Singapore assessments, published in Asia-Pacific/Arab Gulf Market Scan and Platts Global Alert pages 2304 and 2310 are impacted by this proposal and the request for more feedback:

Full details of the current gasoline assessment methodology can be found at: http://plts.co/N5hJ30qCT0D.

Please send all feedback and comments by Oct. 4, to asia_products@spglobal.com and PriceGroup@spglobal.com .

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available upon request .