Federal Minister for Petroleum Musadik Masood Malik clarified on Wednesday that no formal agreement has been reached regarding the purchase of crude oil from Russia, despite ongoing negotiations. His statement comes in response to media reports claiming that a deal had been finalized.
Addressing the media, Malik stated that while discussions with Russia about crude oil procurement are ongoing, they have not resulted in any formal agreement. He explained that an earlier attempt to purchase oil through a public sector company did not materialize.
“There was an idea to import oil by creating a subsidiary, but that plan could not be completed,” the minister said, adding that the government’s goal is to provide oil to refineries at international market prices.
Malik also revealed that after the first cargo of Russian crude oil was delivered, Pakistan Refinery Limited (PRL) did not place any further orders. He attributed this to a surplus of Liquefied Natural Gas (LNG) in the country, which has reduced the need for additional oil imports. “No new oil cargoes are being sourced from any country at this time,” he confirmed.
The minister also addressed Pakistan’s LNG imports, revealing that the government had postponed five LNG cargoes from Qatar. He added that discussions are underway to ensure no additional LNG cargoes are ordered from Qatar next year.
Malik highlighted that the international LNG market is currently experiencing a price drop due to excess supply, a trend that could benefit Pakistan’s domestic market. He noted that the government is working on a framework to deregulate petroleum product prices, which he said would lead to immediate price reductions for consumers.
While no new agreements have been made, Malik emphasized that negotiations with Russia will continue. “We will keep the dialogue open, but as of now, no new cargoes will be taken apart from the previous agreements,” he said.
The minister’s remarks underscore the government’s cautious approach to energy imports, as it seeks to balance domestic needs with international market trends and ongoing negotiations.
