Russia Offers Petrol & Diesel at Discounted Rates – Govt
State Minister for Petroleum Musadik Malik announced yesterday that Russia has decided to provide petrol and diesel to Pakistan at discounted rates. However, he didn’t give any indication of the price. The announcement came a month after Finance Minister Ishaq Dar said that the country is considering buying discounted Russian oil.
Talking to media, the minister said that Moscow had confirmed the availability of 100,000 barrels per day crude oil supply to Islamabad. “A delegation would visit Islamabad in January to set terms of the deal, including rates and mode of payment,” the sources have claimed.
The minister told the media that the delegation would visit on January 23, 2023. Earlier, he stated that the negotiations with Russia over discounted oil have proved quite positive, adding that Moscow will offer a discount on refinery products, petrol, and diesel.
International Cap on Russian Oil
Malik didn’t say whether the imports would comply with the $60 per barrel cap imposed by G-7 nations and the EU on Russia this week. However, Moscow has said it will not sell to countries that comply with this cap. As per media reports, the US has told the Pakistani finance minister to buy oil from Russia on a specific cap. Now, the main question is whether Russia will agree to sell oil to Islamabad on this cap or not, as this would be the main negotiation point during their delegation visit.
Malik stated that the government is determined to resolve the problems faced by the energy sector. “We held talks with Russian companies regarding the liquefied natural gas (LNG) sector,” he said, adding Pakistan has been invited to start contracts for 2025-26. “Now there will be talks between two governments besides the private sector,” he mentioned.
Current Petrol Prices in Pakistan
Last week, the government announced to retain the petrol prices in Pakistan for the third consecutive fortnight. The current fuel prices in Pakistan are:
Petrol = Rs. 224.80/liter
high-speed diesel (HSD) = Rs. 235.30/liter.
Light Diesel Oil (LDO) = Rs. 186.50/liter
Kerosene Oil = Rs. 191.83/liter
What do you think about discounted Russian oil? Please share your thoughts in the comments section.