ISLAMABAD – Arrival of first shipment of much-anticipated Russian crude oil has raised a question that whether the government will pass on the effect of discounted price to the end consumers in the next fortnightly review.
Out of 45,000 metric tonnes of crude oil, 3,000 metric tonnes have been transported from Port Qasim to Pakistan Refinery Limited and the remaining quantity would be shifted during the next 24 hours. The second shipment of Russian crude oil is expected to reach Pakistan next week.
Pakistan had placed first order about two months back after signing a deal with Russia. Pakistan will evaluate the effectiveness of payment mechanism under new barter trade agreement, calculate transportation and refining costs, and margins for refineries. After processing and delivery of refined petroleum to the end consumers, the relevant authorities will submit a report regarding quality, transportation cost and commercial viability of the product to the government. After that, Pakistan will go for a long-term government-to-government deal with Russia.
Pakistan has resorted to this move to diversify sources of oil imports amid rising global prices. The country was mainly exporting crude oil from the Gulf states. Russia is a major producer of crude oil and has offered the country discounted oil prices.
Last Sunday, Prime Minister Shehbaz Sharif announced arrival of first shipment of discounted crude oil from Russia, saying that he has fulfilled another promise with the nation.
Though people are hoping for a decrease in prices of petroleum products, it is really difficult at least in the next fortnightly review. However, it can happen after start of continuous supply from Russia.
Petroleum Minister Musadik Malik expressed hope of gradual decrease in prices of petroleum products on getting continuous supply of crude oil from Russia. He hoped that the prices would drop considerably on increase in share of Russian crude oil. 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. He, however, expressed his inability to give the exact price of petroleum products on getting smooth supply from Russia.
