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PRL to submit report on Russian oil in July

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  • PRL may take two months to refine 100,000 tonnes of Russian crude.
  • Refineries already facing a shortage of furnace oil; export it at 25% loss. 
  • Arrival of remaining Russian crude readjusted due to storage constraints.

ISLAMABAD: In two weeks, the Pakistan Refinery Limited (PRL) is likely to submit to the government a report about the quality, yields, and commercial viability of the Russian crude oil URAL — which is heavier — The News reported, quoting a Petroleum Division senior official.

The PRL, which is in the process of refining Russian crude, will submit the report to the Petroleum Division about the yields (production of petrol, diesel, FO, and light diesel oil, in terms of percentages), quality, and — more importantly — its viability for Pakistan’s economy after refining cost and margins of the refinery have been worked out.

The report will help the government’s relevant functionaries decide whether to go for a GtG import deal with Russia.

The local refineries currently produce an average of motor spirit (petrol) at 25-30% and furnace oil at 45% by using the crude of Saudi Aramco and ADNOC.

However, the official said that half of the 100,000 tonnes of Russian crude would be exported as furnace oil at 75% of the crude cost with a 25% loss because URAL crude is heavier crude, and 50% of furnace oil will be produced.

“Pakistan refineries that use crude mostly from Saudi Aramco and ADNOC are already facing an ullage of furnace oil in their storages and they export the furnace oil with a 25% loss.”

The deep conversion refineries in Dubai make finished products out of the furnace oil that Pakistan refineries have exported at 25%.

The official said PRL — an old refinery — is processing the Russian crude.

Even though the heavy Russian crude is a discounted fuel, PRL will produce 50% furnace oil out of it, meaning that the ship containing 50,000 tonnes will be exported as furnace oil as its utility in Pakistan is not up to the mark.

Last Sunday, PRL just exported 25,000 furnace oil out of the crude that it normally uses from Saudi Aramco and ADNOC.

“However, because of the gas crisis in the country, and the increase in temperature, the demand of electricity has increased and the authorities concerned have started using the local furnace oil for power generation too.”

The official disclosed that PRL might take two months’ time to refine 100,000 tonnes of Russian crude as it first blends 25-30% of Russian URAL with 70-75% of the crude from Saudi Aramco, and then it refines the blended crude.

The Petroleum Division official said the first cargo carrying 45,000 tonnes of Russian crude arrived at Karachi Port Trust on June 11. Now, the same shipment with 55,000 tonnes would arrive again on June 29 — earlier scheduled to arrive on June 20.

The arrival of remaining Russian crude has been readjusted because of the storage constraints. And on top of it, the official said a vessel containing 70,000 tonnes crude oil from Saudi Aramco is due on June 25 for Pakistan Refinery Limited.

The main ship from Russia with 100,000 tonnes of URAL crude arrived in Oman on June 7. From there, a small ship had been arranged to transport the crude in two rounds.

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April FDI in Pakistan increased to $358.8 million, according to SBP

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The inflow for April was $358.8 million, up 177% from $132 million in April FY23. Still, that was 39% more than the $258 million from March.

China was the largest investor, with $439.3 million in FDI from the nation between July and April of FY24—the greatest amount—as opposed to $604 million during the same period of FY23. In April, China accounted for $177 million of the total investment.

With $51.93 and 51.89 million invested in Pakistan, the United Arab Emirates and Canada came in second and third, respectively.

The power industry was the main draw for foreign investors in FY24, which ran from July to April. This period’s FDI in the power industry was $637.5 million, compared to $776.2 million the previous year. From $338 million to $460 million this year, Hydel Power garnered more attention.

Continue reading: In FY23–24, Pakistan’s per capita income increased to $1680.

According to a separate data released on Wednesday, Pakistanis’ per capita income increased to $1680 in FY2023–2024.

The size of the national economy grew from $341 billion to $375 billion in the current fiscal year, according to figures made public by PBS.

Throughout this fiscal year, Pakistanis’ yearly per capita income increased by Rs 90,534; the monthly rise was Rs 7,544.

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OGRA forbids the purchase or sale of inferior LPG cylinders.

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The 313 LPG marketing and 19 cylinder-producing companies received notices from the OGRA, which described the act of refilling inferior LPGO cylinders as harmful.

Avoid supplying LPG to unlicensed distributors, the OGRA has cautioned LPG marketing companies. Only approved distributors will be able to sell and buy LPG going forward, per the notification, which states that new SOPs have been developed for the LPG industry.

Additionally, the warning said that the decision was made in an effort to preserve both lives and the business in response to an increase in cylinder blast occurrences.

Price reductions of Rs 20 per kilogramme for liquefied petroleum gas (LPG) were implemented in Quetta on May 3.

There is a reduction of Rs 20 on LPG prices, which means that the price per kilogramme drops from Rs 280 to Rs 260.

The costs of LPG were reduced by Rs 20 per kilogramme earlier, bringing the total decrease to Rs 40 per kilogramme over a few weeks. This is something worth noticing.

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PIA announces a significant student discount.

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According to an airline spokesman, the national flag carrier has recently raised the baggage allowance to 60 kg.

Currently, PIA flies one flight per week on Sundays between Islamabad and Beijing.

The discount may be useful to students who intend to spend their summer vacations in Pakistan or who wish to return home after earning their degrees.

Before, students who wanted to visit China could now receive a 27% reduction on their fares through PIA.

On Eid ul Fitr, the national flag airline also reduced the cost of domestic flights by 20% for both economy and executive economy classes.

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