Pakistan’s Current Account Deficit shrinks 37% YoY in 1Q of FY23

[Sayfullah]

Not feasible:

-only 3 Russian blends are suitable for refinement in pak refineries.

-PNSC cant call on Russian ports so an intermediary is needed

-shipping costs may be up to 10x greater for Russian oil per barrel vs ME oil

-we have long term contracts with the ME for oil

-shipment takes 5-6x longer

-no payment system, ruskies dont want dollars anymore- not like we have any anyway

Refineries respond to questions on importing Russian oil

KARACHI: In separate letters on Friday, oil refineries responded to the Ministry of Energy on the question whether it is possible to import Russian crude, Profit has learnt. In a letter written b

profit.pakistantoday.com.pk

Cons outweigh pros as govt examines Russian oil options

None of the Pakistani refineries can handle 100pc Russian crude of any grade, say sources.

www.dawn.com

Officials say Pakistani oil refineries only have capacity to process 30 percent Russian crude oil

KARACHI: Officials at refineries in Pakistan have said given “technical and operational constraints,” the South Asia country can only process up to 30 percent of Russian varieties of crude oil, as Pakistan explores cheaper import options and experts warn a deal with Moscow could become a new...

www.arabnews.pk

our 'analysts' claim its possible whereas our refineries dont want to touch it, it makes little economic sense, i wonder whether we will ever get a proper cost vs benefit analysis, because a 5x longer shipping time will make it difficult to adjust for demand, a new payment system may be complicated and take a long time, shipping costs could very well kill off any benefits there were. Unless im misunderstanding, Ural was less than $20 cheaper per barrel, but if we account for the shipping, intermediary, payment fees in the end i dont think the saving there is worth ruining relationships. On top of that, even at record low prices India paid, they were losing alot of money and their oil companies had to be bailed out by the GOI. I suspect the more suitable blends for our refineries may even have less of a discount ! Oh and these prices im pretty sure were for export to the west, the saudis increased pricing for the west and reduced them for asia

What about Iranian oil? We could barter trade with Iranians for oil bypassing sanctions and since iran is right next to us shipping costs would be very low. We can import like 30% of our annual needs for oil from iran and trade something like rice for it thus saving valuable forex while also continuing to import oil from Arabs to keep good relations with them while lowering our total oil import bill.

 

[arslank03]

What about Iranian oil? We could barter trade with Iranians for oil bypassing sanctions and since iran is right next to us shipping costs would be very low. We can import like 30% of our annual needs for oil from iran and trade something like rice for it thus saving valuable forex while also continuing to import oil from Arabs to keep good relations with them while lowering our total oil import bill.

Iranian oil is very poor quality! so much so that when alot of people travel by car to pak dread using iranian fuel due to its awful quality

 

[Sayfullah]

Iranian oil is very poor quality! so much so that when alot of people travel by car to pak dread using iranian fuel due to its awful quality

Any sources to back this up? A lot of countries pre sanctions bought Iranian oil including China and India.
What about using it for stuff that doesn’t require high quality oil? Also depends on how much cheaper we can get it for because it might be so cheap that it outweighs the negatives of it being low quality.

 

[arslank03]

Any sources to back this up? A lot of countries pre sanctions bought Iranian oil including China and India.
What about using it for stuff that doesn’t require high quality oil? Also depends on how much cheaper we can get it for because it might be so cheap that it outweighs the negatives of it being low quality.

Iran's oil sales stall as China switches to cheaper alternatives from Russia

In an about-face, China, the top buyer of Iranian oil until recently, has decreased its oil purchase from Iran, moving toward purchasing cheaper Russian oil instead.

almashareq.com

cheaper and better quality Russian oil takes their market share, Iran was producing new lighter blends for China, but China also likely had the capabilities to refine it which we dont, hence the russian saga.

Poor Quality Gasoline Deadly for Iranians

Every year about 70% of the fatalities in Tehran are caused by respiratory and heart failure that is directly or indirectly associated with the

www.atlanticcouncil.org