$200 Per Tonne Bunker Price Hike Due to IMO 0.5% Sulphur Cap
Bunker prices could jump by more than $200 a tonne “overnight” when the new IMO 0.5% sulphur cap comes into force in 2020.
Betsakou, head of tanker research at Howe Robinson Partners, said regardless of what type of fuel refiners eventually settle on to meet the new emission requirements, it will be more expensive than current bunker prices.
, MANA correspondent reported.
“There is likely going to be a different blend in Singapore and the Middle East gulf and the compatibility of the two is a question to be answered. But in terms of the price, we could be looking at an extra $200 a tonne, or even more, overnight,” she said.
This would equate to around a 70% increase on the current bunker price of around $280 per tonne.
The new bunker fuel is likely to be blended by a limited number of refineries which would create opportunities for owners, Betsakou said.
“There’s lots of implementation elements that still need to be decided and some of them relate to exemptions, maybe the IMO will grant exemptions when you can’t find the right quality, a compliant fuel when and where you need it.
“The IMO 2020 is the first time that the bunkers cost is going to go up without oil prices being up, it’s just a quality premium rather than an oil price related premium".