Pakistan has halted its import of crude oil from Russia due to an unfavorable refining process that resulted in a higher proportion of furnace oil compared to petrol.
According to sources in the energy sector cited by The News, Pakistan Refinery declined to continue processing Russian oil due to its production of 20% more furnace oil than Arabian crude oil.
Reportedly, the advantages of importing Russian crude oil were constrained, as it led to a higher volume of furnace oil being exported at a lower price. Some insiders also alleged that the Russian oil yielded a lower amount of kerosene and jet fuel for ships, which was deemed disadvantageous for the country.
Industry sources indicated that Pakistan Refinery has temporarily ceased the refining of Russian oil, despite encouragement from former state minister for petroleum, Musadik Malik. After the arrival of two crude oil ships from Russia at the Karachi Port on June 11 and 26, subsequent shipments of Russian oil have ceased.
Over the past year, the matter of importing oil from Russia has acquired considerable political and diplomatic significance. Pakistan has kept the exact pricing of Russian oil and its arrival dates undisclosed.
The initial shipment, containing approximately 45,000 tonnes, arrived at Karachi Port on June 11, while the second shipment, carrying around 56,000 tonnes of crude oil, docked at Karachi Port on June 26.
Experts suggest that for the purchase of Russian oil to become beneficial for Pakistan, Brent crude oil and Arab Light Sea crude oil prices must further increase, while the cost of Russian oil remains stable.
However, the probability of such a scenario is limited, according to these experts. They propose another potential solution for resuming the purchase of crude oil from Russia: the creation of a special price discount by Russia specifically for Pakistan.