Russian crude oil will produce more furnace oil (FO) than high-speed diesel (HSD), which would not reduce the prices of petroleum products domestically,
According to the oil industry players, the arrival of the first cargo of Russian crude oil has been celebrated from the top level of the government to the media.
However, the anticipated reduction in the prices of petroleum products, particularly diesel, and petrol, in the near future would not be possible.
Pakistan Refinery Limited (PRL) received the first cargo of Russian crude oil of 45,000 tonnes on Sunday, and its discharging from the vessel started on Monday.
“The complete discharge of this crude oil will take twenty to thirty hours,” the Karachi Port Trust stated.
On the other hand, the oil industry people believed that the much-talked-about Russian oil was being cherished as a significant achievement, despite its commercial viability not looking promising.
They pointed out that the Russian crude oil was heavy and would produce 50% furnace oil, 32% high-speed diesel, and 18% of the remaining products.
On the other hand, they pointed out that domestic refineries could extract 50% HSD and 25% furnace oil from Arabian crude oil.
They believed that Russian crude oil might disturb the economic pattern of petroleum products from crude oil, and for it to be more commercially viable, the oil price should be at a higher discounted level.