On the verge of default, Pakistan has started importing crude oil from Russia on the lines of India and China. A massive cargo ship carrying oil from Russia has reached Karachi port. The Government of Pakistan claims this will bring down the country’s skyrocketing oil prices, but experts do not seem to agree. They say Russian oil is heavy and will yield more furnace oil than high-speed diesel. This will not reduce domestic oil prices in Pakistan. There is not much demand for furnace oil in Pakistan.
Alam, Pakistani companies are exporting abroad by incurring losses on this furnace oil. In such a situation, Russian oil can cause trouble for Pakistan. It is said that Russia has given this oil to Pakistan at 16 to 18 dollars cheaper. Pakistan has imported this oil from Russia for the first time. 45 thousand tonnes of crude oil has just arrived from Russia. Pakistan has made this payment for this oil in the Chinese currency Yuan. Pakistan hopes that paying in Yuan will give it a relief to maintain foreign exchange reserves, but experts say it is not beneficial.
How Russian Oil Can Become A Headache For Pakistan
Pakistan had to buy Yuan only by selling dollars. Pakistan’s Petroleum Minister claims that the oil prices in Pakistan will come down due to the continuous arrival of Russian oil. However, experts are rejecting this claim. They say that less furnace oil is produced in the oil coming from the Gulf countries, Saudi Arabia and UAE, but it is more in Russian oil. 50 per cent of furnace oil will be made from Russian oil. Pakistan does not need this furnace oil, and selling this oil has become a big challenge. Pakistan is already selling this oil at a loss.
Pakistan’s oil experts say that even though the arrival of Russian oil is being celebrated, it does not see any reduction in oil prices, especially petrol and diesel, shortly. In such a situation, this Russian oil will not commercially benefit Pakistan. That too when Pakistan has spent a lot of money on renting it. In contrast, he said Saudi oil produces 50 per cent high-speed diesel and only 25 per cent furnace oil.
