Can pakistan buy Russian Oil and how much it’s good for pakistan. It’s discussing in all Pakistan. Rising oil prices and petroleum prices in Pakistan and political reasons are affecting the country very badly. The former government’s claims of buying cheap Russian oil and the subsequent announcement by current Finance Minister Miftah Ismail to buy wheat from Russia have raised many new questions in the debate. On Tuesday, in response to a question from CNN host Becky Anderson about the purchase of Russian oil, Muftah Ismail said, “The previous government wrote a letter to Russia, to which there was no response. So far, Russia has not offered to sell oil, and Russia is currently under sanctions, so it is difficult for me to think that we can buy oil from Russia.
While whether Russia offered to supply oil to the former government remains unanswered, there are also questions about whether Pakistan can import oil from Russia while India is doing? Could this be a viable project for Pakistan, and is Russian crude capable of using Pakistan’s refineries for manufacturing petroleum products?
how much oil India has imported oil from Russia and how it has benefited it?
India imported 34 million barrels of crude oil from Russia at discounted rates. That is more than three times the total amount of oil imported in 2021. India received 24 million barrels of crude oil from Russia in May, Reuters news agency reported, citing data from research firm Refinite Icon. It was 7.2 million barrels in April, compared to just three million barrels in March.
According to official Indian statistics, India will increase its crude oil imports from Russia to 28 million barrels in June. Due to the increase in oil imports, the value of India’s imports from Russia reached 6.4 billion between February 24 and May 26. That value was just over 2 billion last year, more than tripling. India is the third-largest consumer of oil globally after the United States and China, and 80% of the country’s oil needs are imported from different countries.
In 2021, India imported only 2% of its oil, or about 12 million barrels of crude oil, from Russia. Russia, Ukraine Conflict The price of Russian crude oil has dropped significantly in the world market, so Russia has given crude oil to India at very discounted prices. “Russian Ural crude is sold at about 30 dollars a barrel cheaper than the world oil market. On a normal day, the price of Russian oil and oil from other markets is equal. India is getting Russian oil at a good discount.
After Russia invaded Ukraine in February, the United States called on European countries and India to boycott Russian oil. India was under pressure from many quarters not to buy Russian oil, but India rejected the appeal of US and European countries, saying that European countries buy more oil from Russia and that India could only supply its own needs. The percentage of oil is being bought from Russia. Despite US anger, India has had no problem buying oil from Russia. The two countries have developed a reciprocal payment system to purchase Russian oil, with some payments being made in rubles, some through subsidiary countries such as Kazakhstan and some through exports of Indian goods.
Russian Ural crude oil reaches India directly by sea from ports in the Black Sea. In addition to Russia’s Ural crude oil, CPC blends oil to India through Kazakhstan’s subsidiary transit companies based in Western countries. One thing is clear now that India is currently importing crude oil at cheaper rates than before Russia. Two weeks ago, India had reduced petrol and diesel prices by Rs 7-9 per litre.
Although high inflation has been cited as the reason for this, many experts believe that the government has been able to afford to reduce petrol prices by buying large quantities of subsidized oil from Russia every month. Yesterday, European countries agreed to stop importing oil from Russia, and there is a strong possibility that India will once again come under increasing pressure from the United States and European countries to stop buying oil from Russia.
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Can Pakistan import cheap oil from Russia?
Khurram Hussain, a senior economics journalist, said that India imports oil from Russia but accounts for 10 to 12 per cent of India’s energy needs and has long since imported it from Russia. Is going. But if Pakistan imports oil from Russia, then there are some questions about the viability of this project, the answers to which are very important. Will be willing to finance oil purchases from Russia.
Energy Ministry spokesman Zakaria Ali Shah called the plan to import oil from Russia feasible. According to him, the aim of every government department, including the Ministry of Energy, is to work in the interest of the country and the nation.
Will Pakistani refineries be able to produce products from Russian crude oil?
Can Russian crude oil be imported to Pakistan and used in Pakistani refineries? In response, people in the Pakistan refinery sector say this could happen. Zahid Mir, an oil expert and chief executive of the Pakistan Refinery, told that Russian crude could be used in local refineries. He said that Russia produces two types of crude oil called Sokol and the other Ural. He said that both oils could be used and oil products can be made from them, but he says Sokol is better, which produces less furnace oil.
Zahid Mir had said that different crude oils are being used in different refineries in Pakistan, including Arab Light crude oil along with Arab Extra, Kuwait Super and one and a half and crude oil. Zahid Mir said the refineries have the potential to use Russian crude oil in the same way that they process other countries’ crude oil.
Can Russian oil bring down local prices in Pakistan?
Petrol and diesel prices in Pakistan are a big problem for the country’s economy and the new government. The former government claims that getting cheap oil from Russia would benefit local consumers. According to the announcement made by former Prime Minister Imran Khan on February 28, 2022, petrol and diesel prices were frozen till the budget for the new financial year Was announced.
The new government initially maintained the subsidy, but fears of a fiscal deficit and negotiations with the IMF led to an increase in the price of petroleum products in May. According to official figures, in the first nine months of this year, Pakistan imported petroleum products worth about 15 billion, an increase of 100 per cent over the same period last year.
Although there was a slight increase in the volume of imports, the value of imports increased significantly due to the rise in global oil prices. Talking about the reduction in product prices in Pakistan due to the import of Russian crude oil, Zahid Mir said that it is not so easy because the government of Pakistan does not buy crude oil, but refineries buy from the world market.
He said that the government only fixes the price, and this price is fixed in the local market based on global prices of petrol and diesel. He said that when the government fixes the price, it is determined based on global prices of petrol and diesel and not on the price of crude oil.He said that if crude oil comes from Russia at discounted rates, this government will have to change the pricing formula.
“If the government wants to benefit consumers from crude oil coming from Russia, it will save dollars by buying cheap crude oil, but when determining the diesel and petrol products made from it,” he said. If they are at world market prices, the government will have to subsidize them, but it will not be worth that much because crude oil will be available at discounted prices.
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