Following the United States’ decision to partially ease sanctions on Iran, a fresh debate has emerged in Pakistan over the possibility of importing Iranian oil and gas.
The Minister for Petroleum has also confirmed that Pakistan is in contact with Iranian authorities to explore cooperation in the energy sector, including the potential import of crude oil.
The development has prompted widespread public interest, with many asking whether the legal import of Iranian crude oil would lead to a significant reduction in petrol and diesel prices in Pakistan.
According to energy experts, such expectations are unlikely to materialise in the short term. They explain that the partial easing of sanctions does not necessarily mean Iran will supply crude oil to Pakistan at discounted prices.
Experts believe Iranian crude is likely to be sold at prevailing international market rates, as the easing of sanctions has reduced the need for Iran to offer oil at heavily discounted prices.
Pakistan could, however, benefit from lower transportation costs due to its shared border with Iran. Even so, analysts say these savings alone are unlikely to result in a substantial reduction in retail fuel prices.
Industry data shows that Pakistan meets around 70 per cent of its petrol demand through imports, while approximately 30 per cent of its diesel requirements are imported, particularly from Kuwait.
Experts also note that if Iran resumes large-scale crude oil exports to the global market, major buyers such as India, China and other importing countries are likely to compete for Iranian supplies. As a result, Pakistan’s chances of securing preferential pricing would remain limited.
Another significant challenge lies in Pakistan’s refining capacity. According to industry specialists, Iranian crude is predominantly heavy crude, whereas most of Pakistan’s existing refineries are designed to process light crude. Processing Iranian crude efficiently would therefore require substantial technical upgrades to refinery infrastructure.
Experts conclude that while there is genuine potential for greater energy cooperation between Pakistan and Iran, it would be premature to expect a significant fall in petrol and diesel prices solely as a result of importing Iranian crude oil under the current circumstances.
