Pakistan to receive first shipment of Russian oil next month, claims minister

Islamabad [Pakistan], April 3 (ANI): Minister of State for Petroleum Musadik Malik on Monday claimed that the first-ever shipment of cheap oil from Russia would reach Pakistan next month, reported Geo News.

During an interview with a private news channel, the State Minister said that Islamabad has finalised the deal with Moscow, adding, “The first shipment will reach next month through a cargo.”

The State minister also assured that the government would pass on the benefit of cheap oil to consumers. Responding to a question about rationalising power and gas tariffs, he said the government would introduce different tariffs for the poor and elite class, reported Geo News.

The deal, which has been in the making for months, could ease some of Pakistan’s fiscal trouble as the country, a net importer of energy, looked for ways to cut its oil import bill.

Malik said the government had already made progress in this regard and hoped to issue separate billing for the underprivileged and elite class, reported Geo News.

The poor segment of society will enjoy relief after the announcement of this tariff, he further said.

“However, it will take some time for the oil to reach Pakistan … nearly 26 to 27 days,” he stated, revealing that the commodity will arrive in the country via sea.

Last month, the sources told The News that the Petroleum Division was trying to procure Russian crude oil at around USD 50 per barrel, at least USD 10 per barrel below the price cap imposed by the G7 countries on the precious commodity being taken from Russia due to its war on Ukraine.

Officials, involved in the virtual talks with Russia, had shared that Moscow was more interested in completing all the prerequisites such as the mode of payment, shipping cost with premium, and insurance cost before signing the agreement with Pakistan, reported Geo News.

Talks have been ongoing between Pakistan and Russia since last year for the trade of oil which had remained a contentious issue in Pakistan’s politics.

Former prime minister Imran Khan had repeatedly claimed that his government was ousted for pursuing an “independent foreign policy,” which would have allowed the country to buy oil at a discounted price from Russia, just like India.

Meanwhile, the current government also stepped up efforts to reach an agreement with Moscow for oil imports. In October 2022, Finance Minister Ishaq Dar said that the country was considering buying discounted Russian oil. This was followed by Malik’s visit to Russia for talks on oil and gas supplies, reported Dawn.

In January, a Russian delegation arrived in Islamabad for talks to finalise the deal.