Monday, February 26, 2024

How Much Discount Will Pakistanis Get on Petrol Price After Russian Oil Import?

The first shipment of crude oil from Russia is expected to arrive in Pakistan by the end of this month, bringing hope for relief in fuel prices as the country grapples with soaring food and fuel costs.

However, Minister for Planning, Development, and Special Initiatives Ahsan Iqbal clarified in a recent interview with a foreign media outlet that there won’t be an immediate reduction of Rs100 in fuel prices as rumored. While the import of Russian oil will provide relief to the people, the minister did not provide any specific figures.

Initially, a limited quantity of Russian oil is being imported, with plans to increase the imports in the coming months. The government aims to import one-third of Pakistan’s total crude oil requirements from Moscow as part of efforts to alleviate financial pressures, given the country’s balance of payments issue and low foreign exchange reserves.

In 2022, Pakistan imported 154,000 barrels of oil per day, with the majority coming from Saudi Arabia, the world’s largest exporter, and the United Arab Emirates. The arrival of Russian oil is expected to diversify Pakistan’s energy imports and potentially provide cost benefits in the long run.

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