A common question in current economic debates is why Pakistan cannot benefit from discounted Russian oil the way India does. While the idea seems simple, the limitation lies not in willingness but in structural and technical realities.
Pakistan has already explored this option. Trial shipments of Russian crude were imported and tested by local refineries. However, the results revealed a key issue. Russian oil, particularly the Urals blend, is heavy crude. When processed, it produces a high proportion around 50–55% of furnace oil.
This creates a problem because most of Pakistan’s refineries operate with outdated hydro-skimming technology designed decades ago to handle lighter crude from Gulf countries. These older refineries cannot efficiently process heavy crude, resulting in excess furnace oil, which no longer has strong domestic demand.
Policy constraints further complicate the situation. Under IMF related reforms, higher duties apply to furnace oil making its production commercially unattractive. As a result, refineries face pressure to reduce furnace oil output rather than increase it making Russian crude an impractical option.
In contrast, India has invested heavily in modern, deep conversion refineries capable of processing heavy crude efficiently and producing higher-value products. This technological advantage allows India to profit from discounted Russian oil without the inefficiencies Pakistan faces.
Pricing is another important factor. Even if a Pakistani refinery manages to import cheaper oil, domestic fuel prices are determined through international benchmarks and import parity mechanisms. This means any cost benefit would likely remain with the company rather than being passed on to consumers.
In essence, the issue is not access but compatibility. Until Pakistan upgrades its refining infrastructure and aligns its policies, importing Russian oil at scale will remain economically unviable.
Keywords:
Pakistan Russian oil imports, India Russian oil advantage, heavy crude refineries, Pakistan refinery limitations, Urals crude processing, IMF fuel reforms Pakistan, furnace oil Pakistan, India energy strategy, discounted Russian oil, global oil market 2026, refining infrastructure Pakistan, fuel price mechanisms
Moanir Abi Hadi
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