Russian oil to help gradually reduce fuel prices: Musadik

SUPPLY OF INEXPENSIVE OIL TO COMMENCE WITHIN WEEK

Minister of State for Petroleum Musadik Malik on Tuesday, while addressing the Pakistan Energy Conference 2023, said that while the immediate effect on fuel prices would not be significant, a gradual decline would ensue once a continuous supply of Russian oil was established.

Malik assured the audience that the import of Russian oil was not mere talk but a tangible reality. Ships carrying the oil had already arrived in Oman, and within a week, the supply of inexpensive Russian oil to Pakistan would commence.

He acknowledged that the arrival of a single ship of oil would not immediately impact fuel costs. However, once the supply became consistent, a gradual decrease in fuel prices could be expected.

The government’s objective is to fulfill one-third of Pakistan’s crude oil requirements using cheap oil, including imports from Russia. Malik emphasised the government’s plan to ensure a sustainable and affordable energy supply for the country.

Pakistan has long faced chronic energy shortages, relying on imports for 84% of its petroleum products, primarily from Saudi

Arabia and the United Arab Emirates. Importing affordable Russian oil is part of Pakistan’s strategy to mitigate its energy crisis, even as global efforts aim to curtail Russian oil exports due to the ongoing conflict in Ukraine. Earlier this month, Malik confirmed that an initial order for Russian oil had been placed, with its arrival in Pakistan expected within a month. The government will assess the quantity of future imports based on this initial shipment.

Malik also expressed openness to exploring additional sources of cheaper energy, stating that if such sources were available, Pakistan would pursue them.