According to sources who spoke to The News on Sunday, the Petroleum Division is attempting to buy Russian crude oil for around $50 per barrel, at least $10 per barrel less than the price cap set by the G7 nations on the valuable commodity being taken from Russia as a result of its conflict with Ukraine.
Presently, the price of a barrel of crude oil is $82.78.
Before signing the agreement with Pakistan, Moscow is more interested in fulfilling all the conditions, including the method of payment, the shipment cost with premium, and the cost of insurance, according to officials involved in the virtual negotiations with Moscow.
Under the condition of anonymity, officials told the publication that after the prerequisites are completed, Russia would answer regarding the basic price discount. They also mentioned that it would take 30 days for crude oil to be shipped from Russian ports, which would result in a $10–$15 rise in price per barrel for transportation.
Moscow and Islamabad are having productive discussions in the hopes of reaching a government-to-government agreement on the import of Russian crude by the end of March.
In response to a query, they stated that the government had made the decision not to disclose the method of payment to Russia for the import of crude oil. But, authorities are debating whether to transfer the petroleum using ships from the Pakistan National Shipping Company (PNSC) or Russian tankers.
While the Russian crude tanker will arrive in 30 days, “we also have to keep in mind the landing cost of Russian crude, which would result in per barrel shipping costs that would hover around $10-15,” the person said, adding that Moscow has not yet agreed to the reduction. “We worry that the crude oil shipping costs will offset the greatest discount.”
Yet, in a news conference, State Minister Musadik Malik asserted that Pakistan will receive a 30% discount on Russian crude oil.