https://sputniknews.in/20230614/pakistan-awaits-lower-petrol--diesel-prices-after-large-discounted-russian-oil-shipment--2472835.html
Pakistan Awaits Lower Petrol & Diesel Prices After Large Discounted Russian Oil Shipment
Pakistan Awaits Lower Petrol & Diesel Prices After Large Discounted Russian Oil Shipment
Sputnik India
A cargo ship carrying Russian crude oil from Oman has docked in Pakistan's port city of Karachi as Islamabad has, for the first time ever, paid for oil in Chinese yuan.
2023-06-14T12:34+0530
2023-06-14T12:34+0530
2023-06-15T18:10+0530
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A much-awaited Russian ship carrying 45,000 metric tones of crude oil arrived in Pakistan last weekend, while another 50,000 metric tones is expected later this week, according to Pakistan Refinery Limited (PRL).The cargo was delivered to the port of Karachi as part of a deal between Islamabad and Moscow reached in January, when a Russian delegation visited the Pakistani capital. The deal's first order was placed in April.The minister did not reveal any other details on the price or discounts applied to the purchase.Musadik Malik on Wednesday said the government could not disclose the contractual terms of its oil purchase from Russia, but assured that Islamabad was receiving favourable rates. According to previous reports, however, Pakistan had agreed to a per-barrel price of around $50-52.At present, the crude oil is being transported from Karachi's Port Qasim to Pakistan Refinery Limited (PRL) where it will be processed to refined petroleum and sent to relevant consumers.The authorities at PRL will be submitting a report on the crude oil's quality, transportation costs and commercial viability to the government. After that, Pakistan will go for a long-term government-to-government deal with Russia.Crucial Timing of Russian Crude OilThe transaction in yuan represents a significant shift in Pakistan’s US dollar-dominated export payments policy. Russia signed the oil deal with Pakistan as part of a move to expand its export routes after it was hit with a barrage of sanctions by the EU, the G7, and their allies in December, along with a price cap of $60 per barrel.Russia stepped up its oil exports to countries such as India and China and negotiated payment settlements in currencies other than the US dollar due to sanctions, which cut Moscow off from the Western financial system.Meanwhile, Pakistan was looking to diversify sources of energy imports amid rising global prices.Islamabad was mainly importing crude oil from the Gulf states, such as the UAE, Saudi Arabia and Qatar, but due to the severe economic crisis, Pakistan was facing a shortage of foreign currency to pay for fuel imports.Energy imports account for most of Pakistan's external payments. The country imports nearly 80% of its domestic petroleum requirement, ringing up an import bill of $13 bln in 2022-23.Hence, the crucial timing of getting this Russian crude oil will help stabilize oil prices in Pakistan.Petroleum Minister Musadik Malik has hoped for a gradual decrease in prices on petroleum products in Pakistan thanks to the crude oil from Russia. He told a private news channel on Monday that petrol prices in the country will fall once the supply from Russia starts rolling in on a regular basis.The oil shipment comes at a time when Pakistan has less than $4 bln in foreign reserves, enough to cover less than four weeks of imports. Moreover, Pakistan is still waiting to receive a $1.1-bln bailout package from the International Monetary Fund (IMF) as part of a $6.5-bln loan program expiring this month.Despite the StruggleA key point to note is that it was Pakistan's former prime minister, Imran Khan, who made the effort for the increased bilateral trade between Russia and Pakistan when he came to visit Moscow and met with President Vladimir Putin in February last year.At the time, in a move toward a multipolar world, the Pakistan Tehreek-e-Insaf (PTI) chief lauded India's foreign policy and said that Islamabad wanted to get cheaper Russian crude oil just like New Delhi, but was not able to do so because his government collapsed in a no-confidence motion a month after his Russia tour.Notably, Khan was the first Pakistani PM to visit Moscow in the last 23 years, and it was his effort that has resulted in the recent energy cooperation between the two countries. That is why Pakistani netizens on social media were congratulating Imran Khan and PTI when the news of the Russian oil cargo reaching Karachi broke earlier this week.On Saturday, the former premier had an interview with a major US publication, during which he said that the United States exerted diplomatic pressure to remove him from office last year.Speaking to the US news magazine, Khan said he visited Russia on the same day that Moscow launched its military operation in Ukraine in February 2022, but refrained from condemning the action.During the interview, Khan added that, after an early March 2022 meeting between Pakistani and US diplomats, he was informed that unless he was removed as prime minister, there would be "consequences."Although Washington has denied any strong-arm tactics against Islamabad, the former prime minister was ousted from office quite suddenly in April last year, despite being the country's most popular, democratic leader.Since then, Khan has come up against numerous obstacles, which have included arrest warrants, multiple court cases, an assassination attempt, thousands of arrests of his party workers, and the disintegration of his party, PTI.Khan has been demanding countrywide snap elections, because he maintains that only fair elections can put the country on the recovery track, both politically and economically.
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Pakistan Awaits Lower Petrol & Diesel Prices After Large Discounted Russian Oil Shipment
12:34 14.06.2023 (Updated: 18:10 15.06.2023) A cargo ship carrying Russian crude oil from Oman has docked in Pakistan's port city of Karachi as Islamabad has, for the first time ever, paid for oil in Chinese yuan in a move away from the US dollar-dominated export payments policy.
A much-awaited Russian ship carrying 45,000 metric tones of crude oil arrived in Pakistan last weekend, while another 50,000 metric tones is expected later this week, according to Pakistan Refinery Limited (PRL).
The cargo was delivered to the port of Karachi as part of a deal between Islamabad and Moscow reached in January, when a Russian delegation visited the Pakistani capital. The deal's first order was placed in April.
According to Pakistani petroleum minister Musadik Malik, Pakistan has paid for its first shipment of crude oil from Russia in Chinese yuan.
The minister did not reveal any other details on the price or discounts applied to the purchase.
Musadik Malik on Wednesday said the government could not disclose the contractual terms of its oil purchase from Russia, but assured that Islamabad was receiving favourable rates.
"I do not have the liberty to disclose the commercial terms of our contract with Russia, this is part of our contract," Malik said while addressing the media in Islamabad.
According to previous reports, however, Pakistan had agreed to a per-barrel price of around $50-52.
At present, the crude oil is being transported from Karachi's Port Qasim to Pakistan Refinery Limited (PRL) where it will be processed to refined petroleum and sent to relevant consumers.
The authorities at PRL will be submitting a report on the crude oil's quality, transportation costs and commercial viability to the government. After that, Pakistan will go for a long-term government-to-government deal with Russia.
Crucial Timing of Russian Crude Oil
The transaction in yuan represents a significant shift in Pakistan’s US dollar-dominated export payments policy. Russia signed the oil deal with Pakistan as part of a move to expand its export routes after it was hit with a barrage of sanctions by the EU, the G7, and their allies in December, along with a price cap of $60 per barrel.
Russia stepped up its oil exports to countries such as India and China and negotiated payment settlements in
currencies other than the US dollar due to sanctions, which cut Moscow off from the Western financial system.
Meanwhile, Pakistan was looking to diversify sources of energy imports amid rising global prices.
Islamabad was mainly importing crude oil from the Gulf states, such as the UAE, Saudi Arabia and Qatar, but due to the severe economic crisis, Pakistan was facing a shortage of foreign currency to pay for fuel imports.
Energy imports account for most of Pakistan's external payments. The country imports nearly 80% of its domestic petroleum requirement, ringing up an import bill of $13 bln in 2022-23.
Hence, the crucial timing of getting this Russian crude oil will help stabilize oil prices in Pakistan.
Petroleum Minister Musadik Malik has hoped for a gradual decrease in prices on petroleum products in Pakistan thanks to the crude oil from Russia. He told a private news channel on Monday that petrol prices in the country will fall once the supply from Russia starts rolling in on a regular basis.
"If we start getting one-third of our crude oil from Russia, then there will be a big difference in prices and its effect will reach people’s pockets," he said.
The oil shipment comes at a time when Pakistan has less than $4 bln in foreign reserves, enough to cover less than four weeks of imports. Moreover, Pakistan is still waiting to receive a $1.1-bln bailout package from the International Monetary Fund (IMF) as part of a $6.5-bln loan program expiring this month.
A key point to note is that it was Pakistan's former prime minister, Imran Khan, who made the effort for the increased bilateral trade between Russia and Pakistan when he came to visit Moscow and met with President Vladimir Putin in February last year.
At the time, in a move toward a multipolar world, the Pakistan Tehreek-e-Insaf (PTI) chief lauded India's foreign policy and said that Islamabad wanted to get cheaper Russian crude oil just like New Delhi, but was not able to do so because his government collapsed in a no-confidence motion a month after his Russia tour.
Notably, Khan was the first Pakistani PM to visit Moscow in the last 23 years, and it was his effort that has resulted in the recent energy cooperation between the two countries. That is why Pakistani netizens on social media were congratulating Imran Khan and PTI when the news of the Russian oil cargo reaching Karachi broke earlier this week.
On Saturday, the former premier had an interview with a major US publication, during which he said that the United States exerted diplomatic pressure to remove him from office last year.
Speaking to the US news magazine, Khan said he visited Russia on the same day that Moscow launched its military operation in Ukraine in February 2022, but refrained from condemning the action.
The US "wanted us, through the United Nations (UN), to condemn Russia," said Khan, who explained that his government had arranged an agreement to import oil and wheat from Moscow. "If we condemn them right now, what about the impact it’s going to have on our population?"
During the interview, Khan added that, after an early March 2022 meeting between Pakistani and US diplomats, he was informed that unless he was removed as prime minister, there would be "consequences."
Although Washington has denied any strong-arm tactics against Islamabad, the former prime minister was ousted from office quite suddenly in April last year, despite being the country's most popular, democratic leader.
Since then, Khan has come up against numerous obstacles, which have included arrest warrants, multiple court cases, an assassination attempt, thousands of arrests of his party workers, and the disintegration of his party, PTI.
Khan has been demanding countrywide snap elections, because he maintains that only fair elections can put the country on the recovery track, both politically and economically.
