Pakistan has made significant progress in procuring cost-effective oil from Russia through a long-term oil purchasing agreement.
In this deal, local refineries will buy oil directly from Russia, and it will be delivered to a Pakistani port. The agreed-upon price for this oil is $60 per barrel, and the first shipment, which consists of 100,000 metric tonnes of crude oil, is set to arrive in Pakistan this December.
Moreover, government-level negotiations are expected to follow once regular oil supplies begin.
This commercial agreement will also consider the G7 price ceiling for Russian oil, which is $10 per barrel cheaper than prevailing market rates, even when removing the rent premium.
In fact, Pakistan’s initial test cargo has already led to savings of $400 million.
