Pakistan’s petroleum minister, Ali Pervaiz Malik, has indicated that the country is considering purchasing cheaper crude oil and gas from Iran. This opportunity arises after temporary sanctions relief for Iran by the United States. By sourcing this discounted supply, Pakistan could import reduced-priced crude domestically and refine it to produce more valuable petroleum products.
The government expects such a move could save Pakistan approximately $170-340 million annually on oil imports, depending on how much of its total requirement is sourced at a discount, including cost savings from transportation. However, local refineries may face challenges due to Iran’s high furnace oil yield and the limited domestic demand for Iranian crude.
While industry experts believe Pakistani facilities can process Iranian crude, commercial and operational obstacles persist. As Pakistan now evaluates this option, minister Malik has also noted that the government is actively considering reducing petroleum prices, acknowledging that recent discounts on petrol and diesel have eased difficulties in a previously challenging phase of rising fuel costs.
Source: Original report
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