Karachi: Every Pakistani wonders how Russian oil will affect fuel prices.
In a Voice of America (Urdu) interview, Minister for Planning, Development, and Special Initiatives Ahsan Iqbal responded.
The minister denied that Russian oil will lower petrol prices by Rs100. Which reached a record high of Rs282 per litre and are now Rs272.
“There might not be a significant difference,” he remarked. He noted that Pakistan’s large-scale Russian oil imports would “definitely reduce” the price.
“At the beginning, the quantity of imported oil is small, but as it increases in six months to a year, it will help reduce petrol prices,” Iqbal added.
Pakistan and Russia reached an energy deal in April after months of negotiations.
Last month, State Minister for Petroleum Mussadik Malik stated the first Russian oil cargo will arrive in Karachi late May. He stated that if the initial transaction went well, the country will import 100,000 bpd of Russian crude oil.
While, After a trial run, Pak-Arab Refinery Limited (PARCO) and other refineries would refine the crude oil.
Pakistan would purchase one-third of its crude oil from Russia, Malik said a day earlier.
Moreover, The state minister announced that the administration has reached an energy security agreement with Russia that covers all aspects of energy supply.
Malik remarked, “We want to open an energy corridor with Central Asia like the one we have with Gulf countries.”
“This would lower energy costs and help develop industrial clusters and value-added agriculture,” he said.
The minister said the government wants to buy 18-20% of its crude oil from Russia to cut domestic petroleum product prices.
