Pakistan seeks discounts in oil imports from Russia; urges to cap rate at USD 60 per barrel: Report
Pakistan is seeking discounts in oil imports from Russia and has urged Moscow to strike a long-term oil deal while remaining within the price cap at USD 60 per barrel, a media report said on Friday. Pakistan, which is currently grappling with high external debt and a weak local currency, is hoping that snapping crude at discounted rates from Russia will stabilise oil prices in the country, The Express Tribune newspaper reported.
«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.
In June this year, Pakistan Prime Minister Shehbaz Sharif announced that the first shipment of discounted Russian crude oil had arrived in the port city of Karachi, a development that brought relief to the people hit by skyrocketing inflation.
Russia had shipped one cargo with 100,000 metric tonnes of crude oil that arrived in Pakistan 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 USD 7 per barrel.
Concerned with the oil deal with Russia, a delegation from Islamabad is set to fly to Moscow on October 10 with the pact also on its agenda, the report said.
During recent talks with the Russian side, Pakistan had demanded higher discounts, but the former was not ready to give more than USD 8 per barrel.
Now, the Pakistani side has chalked out a new formula that Russia should export crude oil at USD 60 per barrel price cap.
The US has already indicated that it would allow
