During a briefing to caretaker Prime Minister Anwaar-ul-Haq Kakar on the impact of Russian crude on petroleum (POL) prices, the Petroleum Division revealed that the potential benefit of using Russian crude is relatively small, amounting to only Re1 per liter for both petrol and diesel.
The Petroleum Division outlined two key risks associated with importing Russian crude: a 30–36-day transportation period and the production of 60 percent furnace oil that must be exported at 75 percent of the crude's value, resulting in a 25 percent loss.
Only Pakistan Refinery Limited (PRL) is willing to refine Russian oil, and if PRL is the sole refinery, consumers can expect just a Rs1 reduction in the price per liter of petrol and diesel.
In the event that PARCO and NRL jointly refine Russian oil, the benefit could increase to Rs3 per liter, depending on the volume of Russian crude. PARCO's more modern facilities are expected to improve the yield of Russian crude and reduce furnace oil production to some extent. However, both PARCO and NRL have declined to refine Russian oil.
Russia has reduced the discount on Platt prices to $5 per barrel from the previous range of $15-$20 per barrel. Additionally, the cost of Russian oil has exceeded the cap price of $60 per barrel set by G7 countries, potentially causing payment issues if imported above this cap.
Pakistan Refinery Limited (PRL), which is several decades old, processed heavy Russian crude (URAL) over approximately three months by blending it with Middle Eastern and local crude. PRL adopted a strategy involving 45 percent URAL, 45 percent Middle Eastern crude, and 10 percent local crude
The Petroleum Division outlined two key risks associated with importing Russian crude: a 30–36-day transportation period and the production of 60 percent furnace oil that must be exported at 75 percent of the crude's value, resulting in a 25 percent loss.
Only Pakistan Refinery Limited (PRL) is willing to refine Russian oil, and if PRL is the sole refinery, consumers can expect just a Rs1 reduction in the price per liter of petrol and diesel.
In the event that PARCO and NRL jointly refine Russian oil, the benefit could increase to Rs3 per liter, depending on the volume of Russian crude. PARCO's more modern facilities are expected to improve the yield of Russian crude and reduce furnace oil production to some extent. However, both PARCO and NRL have declined to refine Russian oil.
Russia has reduced the discount on Platt prices to $5 per barrel from the previous range of $15-$20 per barrel. Additionally, the cost of Russian oil has exceeded the cap price of $60 per barrel set by G7 countries, potentially causing payment issues if imported above this cap.
Pakistan Refinery Limited (PRL), which is several decades old, processed heavy Russian crude (URAL) over approximately three months by blending it with Middle Eastern and local crude. PRL adopted a strategy involving 45 percent URAL, 45 percent Middle Eastern crude, and 10 percent local crude