Overview
Pakistan State Oil (PSO) talks with the Russian technical delegation today about the crude oil import. PSO and Russia crude oil import talk started from 21-3-2023. The state-owned company PSO selected to talk on the behalf of Pakistan.
The talk on oil import has started yesterday and will be complete today. If both parties agree on terms & conditions, they will sign an agreement today.
The meeting is held in Karachi and it’s a Government-to-Government level talk. An economist Abdul Rehman tweeted that the crude oil import agreement will be sign today. Moreover, he told that the after the recent decline in petrol price Russia traded crude oil at a rate of $42-48.
Russian Oil Import Details
The confirmation of the agreement will come to us today about what both parties have decided. PSO is nominated by the Government of Pakistan and the Operational Service Center (PSC) is nominated as a state-owned company from Russia.
Moreover, the Russian delegation reached Pakistan on Monday and started talking about the crude oil agreement yesterday. It is a part of this agreement that the price of Brent crude oil in the global market comes down by $73 per barrel. Comparatively, in February 2023 Russia’s crude oil stood at $52. Meanwhile, the current rate is circulating between $42 to $48 in the global market.
PSO and Russia will continue the talk for oil import todays and discuss further matters. According to the report, Russia has emphasized that Pakistan refineries should follow G7 countries’ regulations and should import oil from Russia independently. Meanwhile, the government has tried to finalize the deal on GtG basis. As per the G7 regulations, Pakistan should lock the deal of oil import at the rate of $60 per barrel. But Pakistan has tried to less the $10 per barrel rate and wants to lock the deal at $50 per barrel.
Today Russia will finalize the matter including mode of payment, shipping cost with premium, and insurance cost before signing an agreement. As per the source, the Russian company could offer a discount on the base price.
Conclusion
The deal of crude oil import with Russia at a lower rate might be in favor of low fuel prices in Pakistan. The last few years have brought petrol prices at a very huge rate which is not suitable for economic class people. The government has planning to start Rs. 50/L subsidy on oil for motorcycles, rickshaws, and 800cc cars. Petrol subsidy will be start with the proper system by collecting data from Nadra.
