‘Pakistan to place order for Russian crude oil in May’

Minister of State for Petroleum, Musadik Malik, has announced that the government will be placing its first order for Russian crude oil next month. The move comes after the country decided to explore the possibility of buying discounted Russian oil, a decision made by Finance Minister Ishaq Dar last year.

During talks with Moscow officials, the Pakistani government announced it would purchase discounted crude oil, petrol, and diesel from Russia. Technical issues such as insurance, transportation, and payment mechanisms were addressed during a three-day meeting in January 2023, which culminated in a joint statement from both countries.

After achieving consensus on technical specifications, the oil and gas trade transaction will be structured in a way that will have mutual economic benefits for both countries. The discounted oil will arrive in Pakistan via sea, taking approximately 26 to 27 days.

Malik also clarified that Russia had assured the Pakistani government that they were giving Pakistan a discount as much as any other neighbouring country was receiving. He explained that the mechanism for separate gas tariffs for the rich and poor was devised on the orders of Prime Minister Shehbaz Sharif and PML-N supremo Nawaz Sharif.

The distinction between the rich and poor will be determined by the usage of gas. This usage remains the same for the rich but reduces for the poor in winter, from November to March. In Pakistan, 60% of the population is poor, and for them, the gas tariff has either been reduced or kept the same as in the past. The same is true for the petroleum subsidy. Under it, the rich will pay Rs300 for petrol, and the poor will pay Rs200 for the commodity.

Monitoring Desk
Monitoring Desk
Our monitoring team diligently searches the vast expanse of the web to carefully handpick and distill top-tier business and economic news stories and articles, presenting them to you in a concise and informative manner.

Must Read