As the $60pb price cap on Russian oil took effect yesterday, the country has secured an agreement to supply crude oil, diesel, and gasoline to Pakistan at discounts. Officials are yet to disclose the price tags or the rate of the discounts
Using their influence and powers, the EU and the G7 imposed the cap in order to reduce Putin’s oil revenues, and yet keep the Russian oil flowing.
Reports said many large customers Russia in Asia are yet to join the price cap mechanism, but China and India, for example – Russia’s top crude oil buyers now – are demanding steep discounts for the Russian grades.
Pakistan’s minister of state for petroleum, Musadik Malik, who dropped the hint on the agreement with Russia yesterday, explained that for its part, Pakistan has struggled a lot with procuring energy this year after the surge in prices for oil, natural gas, and coal.
Malik led a delegation to Russia last month, and now, he told local media, “Our visit to Russia turned out to be more productive than planned.”
The minister didn’t however go into details whether Pakistan’s crude oil imports from Russia would comply with the $60 price cap, or how much the discount was.
Pakistan is also seeking to negotiate long-term deals with Russian firms for the supply of liquefied natural gas (LNG), the Pakistani minister said. Last month, an official from the petroleum ministry said that.
Pakistan had no other option but to ration natural gas supply this winter, with gas provided three times a day for cooking to households, amid acute shortages and a forex crisis in Africa biggest oil produe the world’s fifth most populous country.
The energy crisis in Pakistan has deepened this year, and now, natural gas supplies will be very limited for households, according to officials.
Pakistan has been experiencing an energy crisis as the country cannot afford to import a lot of energy products at the current high prices. The stronger U.S. dollar and the sky-high LNG prices have worsened the country’s finances, with foreign exchange reserves down in October to their lowest level in three years.
By Bosco Anayo
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