Petroleum Minister refutes reports about discounted crude oil deal with Russia

ISLAMABAD: Federal Minister for Petroleum, Musadik Malik, on Wednesday refutes media reports regarding any agreement for the purchase of crude oil at a discounted rate from Russia.

Speaking to the reporters in Islamabad, the federal minister stated that “news regarding the agreement with Russia for the purchase of crude oil is false.”

The clarification came after news circulating in the media, suggested that during the Inter-Governmental Commission (IGC) meeting in Russia, both Islamabad and Moscow agreed to restart the crude oil trade from January 2025 and that Pakistan would import one cargo each month under the government-to-government arrangement

The petroleum minister highlighted the government’s intention to provide oil to refineries at international market prices through a subsidy mechanism, but this plan was not fully implemented.  “We are creating such a framework that the consumer gets cheap oil.”

Talking about the liquefied natural gas (LNG) issue, Malik revealed that Pakistan has deferred five LNG cargos from Qatar due to an existing surplus and negotiations are ongoing to avoid importing five additional cargos from Qatar next year.

The minister clarified that while talks regarding the purchase of crude oil from Russia continue, there is no official agreement to import crude oil at the government level. “We will not be importing any new cargo beyond previous agreements,” he added.

He also mentioned that Russia is interested in offshore oil and gas exploration.

He also mentioned that a framework for the de-regulation of petroleum product prices is being developed, which will allow for immediate benefits to the public through reduced prices.