Petroleum prices are increasing every day. Being a volatile market and under many uncontrollable forces the fuel prices are always changing. To compete with this situation, the last government made a deal with Russia. Russian crude oil is cheaper than the other sources and could benefit Pakistan. As per the latest news, the cheap Russian oil deal is suspended. Here is why this happened.
As per the sources, Pakistan Oil Refinery has refused to process the Russian crude oil because of being impure. As per the technical team of Pakistan Oil Refinery, Russian Crude Oil is less pure and it has less amount of petrol after processing. On the other hand, Arabian Crude Oil is much pure and has more quantity of petrol as compared. Russian crude oil is good for furnace oil as it is produced in much more quantity.
The benefit of Russian Crude Oil being cheap is ruled out because it needs more processing, It has less petrol, kerosene oil, and jet fuel in it. The only benefit is that it has a rich quantity of furnace oil. This kills the purpose of Russian Crude Oil. On 12th June Pakistan received its first cargo of 45,000 tons of Russian Crude Oil. Later in June, Pakistan received 55,000 tons shipment of Crude Oil again. Petrol prices increased again in Pakistan yesterday.
When the idea of Russian fuel was populated amongst Pakistanis, its drawbacks were not considered. Russian oil does not make financial sense as it has to go through multiple ports and it ends up becoming more expensive! The PDM Govt suspended the Russian Crude Oil deal after the rejection of Pakistan Refinery Limited. What do you think of this? Do let us know in the comments below. Also, follow us on social media.