Pakistan to discuss long-term Russian oil deal next month

Pakistan will begin discussions with Russia next month to discuss a long-term agreement for importing Russian crude oil, as the government strives to diversify its energy sources and deal with high petroleum prices.

According to sources, a high-level delegation will attend an energy conference in Russia from October 10 to October 12 and will meet with Russian officials on the sidelines to explore energy cooperation.

“On the sidelines of this conference on energy cooperation between the two countries, the Pakistani side, led by Energy Minister Muhammad Ali, will meet with Russian authorities,” the sources stated.

According to the agenda of the Pakistani delegation’s visit, the delegation wants to discuss the long-term supply of Russian crude oil to Pakistan, supply of LNG, and the North-South Gas pipeline project.

The Pakistani and Russian sides would meet for the first time in the energy sector following the arrival of the first cargo of Russian crude oil in Pakistan in June this year, after which delivery was discontinued.

“No new orders for Russian crude oil imports have been placed in the last two and a half months because local refineries have shown no interest in importing Ural oil,” sources added.

Unfortunately, the purchase of Russian crude oil did not result in any price relief for end users in the country, since it had no effect on overall petroleum product prices.

According to sources, the crude oil purchased from Russia was commercially viable for PRL because it gained a considerable profit by processing Ural. According to sources, Russian crude oil can only profit if all refineries begin importing it on a regular basis, as just one refinery’s import would have little effect on the consumer pricing of petroleum products in the country.

According to sources, Russia has imposed a prohibition on the export of petrol and diesel; nevertheless, crude oil supplies will continue to be sent to various countries in the future.

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