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Refiner and bunker supplier Indian Oil Corporation Ltd. (IOC) is offering a cargo of 380-centistoke (cst) for loading next month, Reuters reports.

The state-owned firm is said to have offered a 30,000-tonne parcel of 380-cst fuel oil, scheduled for lifting from the southeastern port of Chennai on June 1-4.

IOC's latest offer follows the sale of a similar-sized cargo last month to BB Energy at a discount of $6 a tonne to the IOC formula, on a free-on-board (FOB) basis, according to market sources.

Indian refineries have resumed exports of fuel oil in line with the start of the monsoon season, which is between May and July. During this period there is a large drop in electricity usage from utilities and factories.

Refineries had halted fuel oil exports in late March when production of bitumen was raised to meet rising demand from domestic infrastructure projects.

Before this, IOC had sold two 30,000-tonne 380-cst cargoes for loading on March 4-7 and March 20-23 to oil major BP and commodity trading firm Trafigura.

Both parcels were reportedly purchased at discounts of between $10.00 and $10.50 per tonne to the IOC formula, on a free-on-board (FOB) basis, higher than last month's cargo sale.

Meanwhile, Essar Oil has sold two 60,000-tonne cargoes of 180-cst fuel oil for loading on May 17-21 and May 30-June 3 from Vadinar to oil cargo trader and bunker supplier FAL Oil.

Sharjah-based FAL Oil, is said to have bought the parcels at around $6-$7 per tonne to Singapore spot quotes, FOB, or a premium of $2-$3 per tonne to Middle East spot quotes.

State-run IOC operates refineries in Assam, Gujarat, West Bengal, Uttar Pradesh, Madras and Bihar and is the leading provider of fuel oil for the bunker market, supplying both marine fuel and lubricants to customers in all major Indian ports. The company is also active in the sale of fuel oil cargoes to other countries.

IOC sold 58.3 million tonnes of petroleum products during 2007-08, registering a 8.7 percent growth in volumes as compared to the previous year.