ISLAMABAD – Arrival of first shipment of much-anticipated Russian crude oil and its transportation to Pakistan Refinery Limited for processing has raised a question that whether the end consumers will get any benefit of discounted prices or not.
The simple answer is the big no as the first shipment can fulfill only 2 per cent of the monthly domestic needs of the country. As such, no relief is insight at least in the near future.
However, increasing the share of Russian crude oil in the total oil imports and its sustainable supply can help decreasing the prices in the long term. But that too is possible only when the prices of Russian crude oil are much lower than the international market.
Stability of local currency against the greenback is also necessary to enable Pakistan to control spending on import of remaining portion of crude oil from Gulf.
Recently, Petroleum Minister Dr Musadik Malik has expressed hope of decrease in prices of petroleum products on getting continuous supply of crude oil from Russia. He said that the country was eying on getting one-third of crude oil from Russia at discounted rate. On achieving this target, he said, people would get petroleum products at cheaper price.
However, Former Federal Minister for Revenue Hammad Azhar is not hopeful of getting good results due to delay in imports and specifications of recently imported Russian crude oil.
As per rough calculations, the savings from Russian heavy oil cargo that PDM imported 'too little too late' are worth less than even one of Bilawal's foreign trips.
Had we begun importing regular consignments from April last year, as was planned by PTI govt, the discounts were…— Hammad Azhar (@Hammad_Azhar) June 13, 2023
“As per rough calculations, the savings from Russian heavy oil cargo that PDM imported ‘too little too late’ are worth less than even one of Bilawal’s foreign trips”, he stated in a tweet.
“Had we begun importing regular consignments from April last year, as was planned by PTI govt, the discounts were the steepest at that time & Pakistan could have saved significant foreign exchange”, the tweet reads.
“The quantity imported is approx 45 million litres. Its less than 2% of our monthly consumption. Its a heavy oil specs so will yield 50% FO that is not of much use/saving. Light oil specs were available from April onward last year but PDM refused to engage with Russia for its purpose”, the tweet further reads.
Will Russian oil help reduce petrol prices by Rs30 per liter?
