Pakistan Suspends Import of Russian Oil

The import of the once supposedly ‘cheap’ Russian crude has been suspended after the refining process produced more furnace oil than petrol, according to a report in a National Daily. Quoting sources, the report said that Pakistan Refinery Limited (PRL) has refused to process more Russian crude as the petrol being produced from Russian oil is much less than that produced from Arabian crude. The report further said that despite being touted as cheap, there is little benefit of importing Russian crude as the quantity of furnace oil produced from it is much higher. It further said that even less kerosene and jet fuel had been produced from the Russian crude which further diminished any benefits. Late in June, the second cargo of 55,000 tons of Russian crude arrived in Pakistan. Earlier, on June 12, a vessel carrying 45,000 tons of Russian crude oil docked at the Karachi port, bringing Pakistan its first delivery of Russian crude. The import of Russian oil was pitched as a game changer that would bring down the prices of petroleum products in Pakistan. However, due to less petrol being produced, there is little benefit to importing Russian crude. However, the report said that Russian oil could become feasible if its prices remain at the current level while global oil prices rise. However, such a scenario seems unlikely.