Pakistan, which has been facing a massive cash crunch, has again witnessed embarrassment from Russia as the latter has reportedly rejected its demand to provide more discount on crude oil purchases. According to a report by The Express Tribune, Islamabad urged Russia to finalise a long-term oil deal while remaining within the price cap at $60 per barrel-- nearly $6.8 less than what Moscow sold to India.
As per the Indian Ministry of Commerce, it had received Russian oil at an average price of $68.09 per barrel in July-- less than $31 that New Delhi received in the same month last year.
The Pakistani publication reported that the interim government hoped to get more discounts on oil prices in order to stabilise the economy. "Pakistan wanted Russia to set a benchmark of USD 60 dollars per barrel ‘free on board’ (FOB) – the actual price charged at the port – to import crude oil on a long-term basis.
This means that Russia will also be bearing the freight cost for oil to be exported to Pakistan," the report said.
Pakistan inflated the prices of oil twice within a month
Notably, ever since the caretaker government took oath in August, it inflated the prices of petrol, diesel and kerosene at least twice. Earlier this month, Anwaar Ul Haq Kakar-led government increased the price of petrol and high-speed diesel (HSD) by Rs14.91 and Rs18.44 per litre. On September 29, Friday, the price of Super petrol is Rs 331.38 per litre and high-speed diesel at Rs 329.18 per litre.
Earlier in June this year, the then PM Shehbaz Sharif cracked the deal with Russia and announced that the first shipment of discounted Russian crude oil had arrived in the port city of Karachi. According to the media report, Moscow had shipped one cargo with 1,00,000 metric tonnes of crude oil in one month. The freight cost for that oil was also paid by Russia. That ship was on a trial basis and the Pakistan Refinery Limited (PRL) processed that crude oil that was cheaper by $7 per barrel.
