Pakistan is reportedly set to receive a shipment of over 700,000 barrels of Russian crude oil, according to Russian media citing global energy expert Dr. Mamooda Salame. The consignment, totaling 733,000 barrels, is expected to arrive at Port Qasim amid ongoing tensions in the Strait of Hormuz, which have disrupted global oil supplies.
Traditionally, Pakistan has relied on Saudi Arabia and the United Arab Emirates for its oil imports, though it has occasionally sourced crude from Russia as well. The Pakistan Business Council notes that every 10% increase in global oil prices adds approximately $1.5 to $2 billion to Pakistan’s current account deficit. Analysts warn that if oil prices hit $100 per barrel, the country’s annual deficit could rise to between $5 and $7 billion.
Pakistani officials have yet to confirm the impending shipment of Russian crude. Previously, on June 11, 2023, Pakistan received its first shipment of discounted Russian crude oil, a delivery of 45,000 metric tonnes, aimed at lowering domestic fuel costs.
Will Russian Crude Ease Petrol Prices?
It remains unclear whether the arrival of Russian oil will help reduce local fuel prices. The announcement comes just a day after the Pakistani government implemented a substantial increase in petrol and diesel rates. Petrol prices jumped by Rs55 per litre, from Rs266.17 to Rs322, while diesel rose to Rs355 per litre, effective immediately.
The government stated that the hike is intended to align domestic fuel costs with global market trends, reflecting broader challenges in the energy sector. However, critics argue that such steep increases will further strain ordinary consumers and contribute to rising inflation, intensifying the economic burden on households and businesses alike.
The potential arrival of Russian crude is being closely monitored as Pakistan seeks ways to stabilize its energy sector and mitigate the impact of volatile global oil prices.
drop soon as Pakistan likely to receive 733,000 barrels Russian oil? Here’s a details
