Import of Russian crude oil suspended

KARACHI: The import of crude oil from Russia has been suspended after more furnace oil was produced than petrol from the Russian oil during the refining process, according to sources in the energy sector.

Sources claimed that the Pakistan Refinery had refused to process more Russian oil, as less petrol was being produced from it with 20 per cent more furnace oil compared to the Arabian crude oil.

According to sources, the benefit of import of Russian crude oil was limited with a bigger quantity of export of furnace oil at a lower price. Some sources also claimed that less kerosene and jet fuel for ships had been produced from the Russian oil, which was not beneficial for the country.

According to industry sources, the Pakistan Refinery has given up refining all the Russian oil for now despite the insistence of former state minister Musadik Malik. Two crude oil ships from Russia had arrived at the Karachi Port on June 11 and 26, after which no Russian oil ship had come to Pakistan.

The issue of importing oil from Russia had gained great political and diplomatic importance for the past one year. Pakistan kept the exact price of Russian oil and its arrival secret. The first shipment reached Karachi Port on the evening of June 11, carrying about 45,000 tons. The second ship, with about 56,000 tons of crude oil, had anchored at the Karachi Port on June 26.

According to experts, if the prices of Brent crude oil and Arab Light Sea crude oil increase further and the price of Russian oil does not increase, only in such a case the purchase of Russian oil could be beneficial for Pakistan. But chances for such a situation are limited, the experts believe.

They said that another possibility for resuming the purchase of crude oil from Russia was that it [Russia] should create a special price discount for Pakistan.