Buying RON92 and RON95 gasoline: Define the grade before the price

Gasoline discussions tend to move quickly to the octane number and the price. I prefer to establish the destination specification early, because that is what makes a quotation useful. For RON92 and RON95 enquiries, the complete grade needs to be clear.

RON means Research Octane Number. It describes one measure of the fuel’s resistance to knocking. The octane number on its own does not establish the full quality of a gasoline cargo or its acceptance at destination.

Put the destination specification first

A gasoline specification can include Motor Octane Number (MON), sulphur, benzene, aromatics, oxygen content, permitted oxygenates, vapour pressure and distillation characteristics. The buyer should provide the full requirement and identify any additional restrictions imposed by the receiving terminal or end user.

RON92 and RON95 need to be assessed as separate requirements. Neither label should be treated as confirmation that the cargo meets every other condition in the buyer’s specification. Where EN228 is required, that requirement must be checked in full.

Seasonal requirements also deserve attention. Vapour-pressure and volatility requirements can change with the destination and time of year. Product being considered for loading now must be suitable for the agreed delivery and use period.

This matters when comparing opportunities between Europe, the Mediterranean, the Middle East and African markets. The grade has to suit the intended destination before the commercial discussion can move forward with confidence.

Compare quotations on an agreed basis

Two gasoline indications can look close on price while referring to different specifications, loading windows or pricing periods. A difference in oxygenate content or seasonal grade may make the comparison less useful than it first appears.

We therefore want the product basis, benchmark, pricing period, currency and included costs to be clear. For an FOB proposal, the buyer also needs to assess freight and the practical loading arrangements. For a delivered proposal, the named destination and the scope of the quoted costs need to be understood.

Clear instructions at the outset reduce repeated revisions and help the discussion reach a useful conclusion sooner.

What to include in your enquiry

For RON92 or RON95 gasoline, send the full specification, quantity, destination port, loading or delivery window, preferred trade basis and your company details. Please also state any restrictions on oxygenates or other components.

DRAKENSBERG ENERGY TRADING welcomes enquiries from buyers with a defined requirement. Contact our trading desk so that we can assess the details. Availability, technical acceptance and commercial terms must be confirmed for each proposed transaction.