Business

‘Cheap Russian crude lowers petrol by only Re1’

Published

1 year ago

Farwa

If PARCO, NRL jointly refine Russian oil then benefit could go up to Rs3 per litre.
Russia also squeezed discount to $5 per barrel at Platt price.
No company except PRL ready to refine, say authorities.

ISLAMABAD: The Petroleum Division briefed caretaker Prime Minister Anwaar-ul-Haq Kakar on Russian crude’s impact on petroleum prices, saying that the maximum benefit is quite nominal of Re1 per litre of petrol and diesel, The News reported Friday.

The division added that importing Russian crude involved two risks, including 30-36 days of transportation and 60% production of furnace oil that has to be exported at the rate of 75% of crude with a 25% loss.

No company except Pakistan Refinery Limited (PRL) is ready to refine the Russian oil, and if PRL is obliged to keep refining Russian oil, only Re1 relief can be passed on to consumers per litre of petrol, and diesel price.

The prime minister was also told that if PARCO and NRL jointly refine the Russian oil, the benefit could go up to Rs3 per litre again depending upon the volume of the Russian crude.

PARCO, being comparatively the latest refinery and better plants will help increase the yields of Russian crude and reduce the production of furnace oil to some extent. However, PARCO and NRL have refused to refine Russian oil.

Russia has also squeezed the discount to $5 per barrel at Platt price against $15-$20 per barrel, the PM was briefed.

Brent price stands at $87 per barrel and against it, Russian crude has an existing price of $73 per barrel. The cost of Russian oil has crossed the cap price of $60 per barrel imposed by G7 countries and the import of Russian oil above the cap price will trigger problems on payments issue.

The decades-old PRL refined the heavy Russian crude URAL in almost three months by blending it with crude from the Middle East and local crude. The refinery adopted the strategy of refining by blending 45% URAL, 45% crude from the Middle East, and 10% local crude.

PRL is too old as it was incorporated in Pakistan as a Public Limited Company in May 1960. PRL is a hydro-skimming refinery designed to process various imported and local crude oil to meet the strategic and domestic fuel requirements of the country.

The refinery has a capacity to process approximately 50,000 barrels per day of crude oil into a variety of distilled petroleum products such as motor gasoline, high-speed diesel, furnace oil, jet fuels, kerosene oil, and naphtha. Out of 100,000 URAL, PRL has produced 10% Mogas (petrol) 60% furnace oil and 10-15% high-speed diesel, and the remaining 15% other items.

The official said that the furnace oil out of URAL has been produced 50% with high viscosity at 700cSt and PRL has to mix 10%v diesel in it to decrease its viscosity at 180 cSt so that it could flow. This is how the furnace oil production at 180 cSt escalates to 60% and diesel production is reduced by 10%. The net diesel production stands at 10-15% out of URAL. This means that out of 100,000 tonnes of URAL crude, the decades-old PRL has to export 60% URAL crude in the shape of furnace oil at 75% of crude with a 25% loss.

Business

With its second-largest surge ever, PSX approaches 114,000 points.

Published

1 day ago

Farwa

Driven by renewed activity from both private and government financial institutions, the Pakistan Stock Exchange (PSX) saw its second-largest rally in history on Monday.

The market regained many important levels in a single trading session as it rose with previously unheard-of momentum.

Intraday trading saw a top increase of 4,676 points, and the PSX’s benchmark KSE-100 Index gained 4,411 points to settle at 113,924 points. This impressive rebound demonstrated significant investor confidence by reestablishing the 100,000, 111,000, 112,000, and 113,000-point levels.

The market also saw the 114,000-point limit reestablished during the trading session.

The positive tendency was reflected when the market’s heavyweight shares touched its upper circuits. Among the most busiest trading sessions in recent memory, an astounding 85.78 billion shares worth a total of Rs55 billion were exchanged.

Experts credited the spike to heightened institutional investor activity and hope for macroeconomic recovery. Considered a major market recovery, the rally demonstrated the market’s tenacity and development potential.

Business

In interbank trade, the Pakistani rupee beats the US dollar.

Published

1 week ago

Farwa

In the international exchange market, the US dollar has continued to weaken in relation to the Pakistani rupee.

The dollar fell to Rs278.10 from Rs278.17 at the beginning of interbank trading, according to currency dealers, a seven paisa loss.

In the meantime, there was a lot of turbulence in the stock market, but it recovered and moved into the positive zone. The KSE-100 index recovered momentum and reached 116,000 points after soaring 1,300 points.

Both currency and stock market swings, according to analysts, are a reflection of ongoing market adjustments and economic uncertainty.

Business

Phase II of CPEC: China-Pakistan Partnership Enters a New Era

Published

1 week ago

Farwa

The cornerstone of economic cooperation between the two brothers and all-weather friends is still the China-Pakistan Economic Corridor, the initiative’s flagship project.

In contrast to reports of a slowdown, recent events indicate a renewed vigour and strategic emphasis on pushing the second phase of CPEC, known as CPEC Phase-2, according to the Ministry of Planning, Development, and Special Initiatives.

According to the statement, this crucial stage seeks to reshape the foundation of bilateral ties via increased cooperation, cutting-edge technology transfer, and revolutionary socioeconomic initiatives.

Planning Minister Ahsan Iqbal is leading Pakistan’s participation in a number of high-profile gatherings in China, such as the 3rd Forum on China-Indian Ocean Region Development Cooperation in Kunming and the High-Level Seminar on CPEC-2 in Beijing.

His involvement demonstrates Pakistan’s commitment to reviving CPEC, resolving outstanding concerns, and developing a strong phase-2 roadmap that considers both countries’ long-term prosperity.

At the core of these interactions is China’s steadfast determination to turn CPEC into a strategic alliance that promotes development, progress, and connectivity.

Instead of being marginalised, CPEC is developing into a multifaceted framework with five main thematic corridors: the Opening-Up/Regional Connectivity Corridor, the Innovation Corridor, the Green Corridor, the Growth Corridor, and the Livelihood-Enhancing Corridor.

With the help of projects like these, the two countries will fortify their partnership, and CPEC phase-2 will become a model of global economic integration and collaboration that benefits not just China and Pakistan but the entire region.