Overview
Pakistan and Russia’s crude oil import brings a lot of questions regarding the future petroleum products prices in Pakistan. Currently, in Pakistan petrol prices are set off at their highest record. It is necessary to look into it and drop petrol price in Pakistan. Petroleum product prices lead to many other products’ prices in Pakistan. the transportation cost is affected by high fuel rates which cause inflation.
The recent report of the Ministry of Petroleum Products confirms the first shipment of Russian crude oil reached Karachi port at the end of May and the time is almost arrived. Russian oil will reduce petrol price in Pakistan. Russia offers low petrol rates compared to the global market. This will be the first Pakistan and Russia oil trade. If it works for Pakistan then Pakistan will start importing oil from Russia regularly.
Planning Minister Shed Light on Petrol Prices
Minister for Planning, Development, and Special Initiatives, Ahsan Iqbal talks about the affairs of Russian oil in his recent interview. Responding to a question regarding the drop of Rs. 100/Liter in current petrol price, he indicated the initial incentives might not be statistically significant. The current petrol price stands at Rs. 270/liter and drops from Rs. 282/liter. However, he said as the Russian crude oil import begins in substantial quantities oil prices will noticeably drop.
First Russian Oil Shipment
The Minister for Petroleum Mussadik Malik anticipated the shipment of the first Russian oil dock at Karachi Port at the end of May. The first order will work as a trial run and open up the ways for the future. He expressed the aim of Pakistan to import 100,000 barrels per day. This significant step toward diversifying the country’s energy sources.
The import of Russian oil will reduce the dependency on traditional petrol. The agreement on Petrol trade with Russia was signed at a low rate compared to the global market.
Russian Oil Import Would Be Helpful?
The purpose of importing oil from Russia is to reduce domestic petroleum product prices across the country. Petroleum prices lead to several product prices in Pakistan. The major effect is on transport which makes goods prices higher. the economy faces a swear crisis due to the high prices of petroleum. The Russian oil import help to improve energy sources.
For the betterment of Pakistan’s economy, it’s a need of the government to find cheap price sources. However, the Petroleum Ministry shows positive concerns about Russian oil crude. If the first shipment will work goof Pakistan they have the aim to increase the number of barrels.
The oil trade with Russia is Pakistan’s and Russia’s first agreement on petrol purchase. This could bolster the country’s energy infrastructure and make a good reputation of Pakistan in trading terms.
Conclusion
Petroleum product prices are a major issue in Pakistan. Every time price increase announcement in petrol prices has made troubles for citizens. To support the production industry and for the growth of the country, petrol prices should be in lay at cheap rates. This shipment of oil is a hope for drop petrol price. The future petrol prices will make new records of cheap petrol prices in Pakistan.
