With petrol prices at record levels and a faltering economy, Pakistan is missing out by not receiving Russian oil at discounted rates. Ousted Prime Minister Imran Khan has also slammed the current government for its inability to buy oil from Russia at lower rates to avert the crisis.
According to reports, a record volume of Russian oil heading to India and China is already on board tankers. Around 74 million barrels are in transit, more than double before the Ukrainian invasion. Asia has overtook Europe as the largest buyer of Russian oil for the first time. Even cash-strapped Sri Lanka has received Russian oil to ease shortages and restart operations at the country’s only refinery.
Unfortunately, the Pakistani government has been unable to take advantage of the situation. The Foreign Office has not ruled out the possibility of importing oil and food products from Russia, saying it has an open policy driven by national interest. However, there have been no arrangements made to receive Russian oil, possibly due to repercussions of a trade embargo and sanctions against Moscow.
The government recently increased oil prices by a record Rs30 per litre. The PTI chairman has slammed the hike, saying he would have reduced prices as he was negotiating a deal with Russia to buy oil at discounted prices before he was unceremoniously ousted. The current government has insisted there has been no written agreement to confirm the former prime minister’s claim.
There are also reports that refineries don’t have the capacity to produce Siberian light crude. It is evident that the main reason seems to be political. The government doesn’t want to impede reviving bilateral ties with United States which are improving after several years. Nevertheless, amid the shortages and high prices, Pakistan should be open to importing oil from Russia.
India has defied Western pressure and continues to buy oil from Russia. Imran Khan even praised India for standing up to US pressure and providing relief to the masses. India was able to drastically reduce petrol prices by Rs9.5 after buying discounted oil. If Pakistan continues to have an independent policy, it should seize the opportunity as global trade is rapidly changing and we are missing out.
