Russia refuses to sell crude oil in cheap price to Pakistan
Russia is apparently refusing to sell its crude stock at such low prices, thus Pakistan is currently asking for a 30–40% discount on crude oil from that country.
According to a national daily, Moscow has refused to provide Pakistan a 30–40% discount on crude oil, citing the fact that volumes had already been reserved to manage a backlog of receipts from other purchasers in the market.
In order to reach an agreement on the import of discounted petroleum, a group led by Dr. Musadik Malik, Minister of State (Petroleum Division), Capt. (R) Muhammad Mahmood, Additional Secretary In-charge (Petroleum Division), and other top government officials travelled to Moscow this week.
The meetings haven’t produced much clarity for either party so far, but the Russian side gave the Pakistani side assurances and will later communicate its responses through diplomatic channels. It is important to note that Russian crude oil is less expensive than the price of international oil, can be processed in Pakistani refineries, and has already been utilised in one private refinery to create finished goods.
The Pakistani government was also urged by the Russian side to first keep its word about the Pakistan Stream Gas Pipeline (PSGP) project. Only a few provisions of the shareholder agreement need to be finished before the project model under the GTG arrangement is considered complete.
It is no secret that Pakistan is in talks with Russia about providing a “crude bailout,” but the South Asian country currently has no long-term plans for reducing fuel shortages, and the market’s spare supply is rapidly running out due to rising demand from other nations.
Russia refuses to sell crude oil in cheap price to Pakistan
Considering this, any agreement will enable the South Asian country to save billions of dollars if energy projects with Russia are put into action, while buying petroleum products from Moscow would ease pressure on the country’s foreign exchange reserves.
