- Monthly Sales Up Twenty-Two Per cent from September Low.
- VLSFO Hits Highest Level Since Late 2022.
- HSFO Demand Continues to Decline Sharply.
Panama’s bunker market saw a nice bounce back in October, with total marine fuel sales hitting 461,308 metric tonnes. That’s a solid 22.7% jump from September’s 19-month low, based on preliminary data from AMP. However, even with this monthly recovery, sales were still 12.1% lower than in October 2024, when relaxed canal transit restrictions had really ramped up activity, reports Port News.
VLSFO Leads the Charge
VLSFO kept its stronghold in the fuel mix, rising to 327,581 tonnes, marking the highest level since December 2022. This reflects a significant 33.2% increase from the previous month and a 3.5% rise compared to last year.
HSFO Takes a Hit
On the other hand, HSFO volumes dropped to 83,386 tonnes, which is a steep 46.9% decline from a year ago and 1.8% lower than September, highlighting the ongoing trend of moving away from high sulphur fuels.
Gasoil Shows Mixed Signals
LSMGO saw a year-on-year increase of 19.9%, while MGO volumes took a sharp downturn compared to last year.
VLSFO’s Share Grows
VLSFO made up 71% of total bunker sales, up from 60.3% in October 2024, emphasising the ongoing shift away from HSFO.
Bunker Activity Picks Up
The number of ships calling for bunkers rose to 637 vessels, up from 592 in September, though it’s still a bit shy of the 651 recorded in October 2024.
Stem Sizes and Year-to-Date Volumes Increase
The average stem size increased to 724 tonnes, compared to 635 tonnes in September. Panama supplied 4.38 million tonnes of bunker fuel in the first ten months of 2025, up from 4.13 million tonnes during the same period in 2024.
Price Environment Eases
October brought some relief for buyers, with lower fuel prices:
- Average VLSFO at Balboa was $467.5/tonne, down from $576 a year earlier. The G20
- VLSFO Index averaged $499/tonne, compared to $605.5 in October 2024.
Regulatory Changes Boost Market Outlook
In early October, the AMP introduced Resolution ADM No. 125-2025, lifting the 2019 restrictions on selling fuel and petroleum derivatives via floating equipment.
This reopens licensing for marine fuel transport and supply, aiming to enhance transparency and competition. Industry reports expect new entrants and expanded capacity ahead of 2026.
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Source: Port News
