Government opens consultation on procuring Russian Oil

June 29, 2022 (MLN): The coalition government has started consultation on procuring Russian oil and gas at much cheaper rates than currently available in the international market.

In this regard, the Petroleum Division has written a letter to the head of four major oil refineries – Pak-Arab, National Refinery, Pakistan Refinery Limited (PRL) and Byco Petroleum.

As per the letter, the petroleum division has asked oil refineries about the price of the acquisition of petroleum products from Russia. In addition, the ministry also asked refineries about the quantity and grade of oil that can be bought from Russia.

The ministry has also sought cost and benefit analysis-based details of Transportation/freight rates for imports from Russia in comparison with normal imports from the Middle East.

 “What will be the method of payment for crude oil purchased from Russia”, the ministry asked the oil refineries in a letter.

Moreover, the existing commitment of upliftment from the Arab Gulf region with respect to Term Contracts has also been requested.

Sources claimed that officials of the Petroleum Division have held separate informal meetings with heads of oil refineries. The coalition government will hold a meeting with four major refineries today (Wednesday), ARY reported.

Meanwhile, it is important to mention that former prime minister Imran Khan and his cabinet were ready to purchase oil at 30% cheaper rates compared to other suppliers. However, his government was ousted from power due to Russia's visit.

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