ISLAMABAD: Pakistan has suspended its import of crude oil from Russia due to the production of a higher amount of furnace oil compared to petrol during the refining process.
Furthermore, the sources indicated that Pakistan Refinery declined further processing of Russian oil due to its higher yield of furnace oil – 20% more than Arabian crude oil – and reduced petrol output.
They also highlight the advantages of importing Russian crude oil were limited due to the increasing export of furnace oil at a lower value.
Some sources asserted that Russian oil produced a decreased amount of kerosene and jet fuel for ships, which did not favor the country’s interests.
Furthermore, industry sources revealed that Pakistan Refinery has currently halted the refining of Russian oil, despite former state minister for petroleum Musadik Malik’s insistence.
Two shipments of crude oil from Russia arrived at Karachi Port on June 11 and 26, after which no further Russian oil shipments reached Pakistan.
The matter of importing oil from Russia has gained significant political and diplomatic significance over the last year.
Pakistan maintained secrecy around the exact price and arrival details of Russian oil. The initial shipment, carrying approximately 45,000 tonnes, reached Karachi Port on the evening of June 11. Subsequently, the second vessel, carrying around 56,000 tonnes of crude oil, anchored at Karachi Port on June 26.
Experts suggest that for Pakistan to benefit from purchasing Russian oil, there would need to be a situation where the prices of Brent crude oil and Arab Light Sea crude oil rise further while the cost of Russian oil remains unchanged. However, the likelihood of such a scenario is reviewed low by experts. They noted that another potential option for resuming the purchase of crude oil from Russia would be if Russia offered a special price discount for Pakistan.
