Amidst anticipation surrounding the import of Russian oil, many Pakistanis are curious about its potential impact on high fuel prices. In a recent interview with Voice of America (Urdu), Minister for Planning, Development and Special Initiatives Ahsan Iqbal shed light on the subject.
When asked whether the price of petrol, which currently stands at Rs272 per litre after reaching a record high of Rs282 per litre, would be slashed by Rs100 once Russian oil arrived in Pakistan, the minister responded negatively. He explained that while there might not be a significant difference initially, the price would definitely reduce as Pakistan started importing larger quantities of Russian oil.
According to Iqbal, the imported oil’s initial quantity would be small, but its impact on petrol prices would become more noticeable over six months to a year as imports increased. Pakistan and Russia reached an oil deal in April, and the first shipment of Russian oil is expected to arrive at the Karachi port in late May.
State Minister for Petroleum Mussadik Malik previously stated that if the first transaction went smoothly, Pakistan would seek to import 100,000 barrels per day (bpd) of Russian crude oil. The Pakistan Refinery Limited (PRL) would initially refine the crude oil in a trial run, followed by Pak-Arab Refinery Limited (PARCO) and other refineries.
Additionally, Malik revealed that Pakistan plans to import one-third of its total crude oil requirements from Russia. The government has finalized a comprehensive energy security agreement with Russia, covering various aspects of energy supply in the country. The objective is to import 18-20% of Pakistan’s total crude oil imports from Russia, aiming to substantially lower petroleum product prices for domestic consumers. The government envisions an energy corridor with Central Asia, similar to the one it has with Gulf countries, to reduce energy costs and support the development of industrial clusters and value additions in the agriculture sector.
