According to a report in a National Daily, The import of the once supposedly ‘cheap’ Russian crude has been suspended after the refining process produced more furnace oil than petrol.
According to a report, Pakistan Refinery Limited (PRL) has declined to process more Russian crude oil, citing that the gasoline yield from Russian oil is lower compared to Arabian crude.
The report highlighted that although Russian crude is considered cost-effective, the advantages of importing it are limited, as it results in higher production of furnace oil.
Moreover, the production of kerosene and jet fuel from Russian crude is also lower, further diminishing the benefits.
In late June, Pakistan received its second shipment of 55,000 tons of Russian crude oil, following the first delivery of 45,000 tons on June 12. The introduction of Russian oil was expected to revolutionize the petroleum product prices in Pakistan. However, due to the lower gasoline output, the actual benefits of importing Russian crude are minimal.
The report indicated that if the current price of Russian oil remains stable while global oil prices increase, it might become a viable option. Nevertheless, such a scenario is considered unlikely.
