Oil imports: Mistrust hounds plan to import fuel from India
The mistrust between the neighbours still seems to prevail and Pakistan is reluctant to place its reliance on India for strategically important products. Instead, the Pakistani establishment maintains there is a need to engage Gulf countries in oil imports, sources say.
“Pakistan refused to import diesel from India in a two-day meeting which concluded on Tuesday as it has a long-term supply contract with Kuwait Petroleum Corporation (KPC),” said an official source privy to the matter.
“If Pakistan relies on India for high-speed diesel and jet fuel, there is a threat to the country’s security if supplies are withheld for any reason.”
The official added that India is keen on providing all the mentioned products to Pakistan and expressed its desire to lay an oil pipeline connecting the two countries.
On the other hand, a senior official from the ministry of petroleum said that Pakistan has not refused to import diesel from India. He maintained that Pakistan has expressed the desire to import furnace oil, diesel and petrol from its neighbour, adding “we have surplus jet fuel and thus we do not want to import that from India.” “We want India to export diesel through Karachi and furnace oil and petrol via the Wagah border to meet the requirements of Punjab.” He added that the commerce ministry has been directed to look into the required infrastructure in this regard.
According to the official, functionaries from both states will meet again in the first half of July in New Delhi to finalise the quantity as well as prices of the products.
Published in The Express Tribune, May 30th, 2012.
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@John B: "...contrary to your perception Indo-US ties are never at the expense of the other, past and now. " Likewise! We would not want it any other way! We, Indians, do not believe in "enemies", much less in "enemies of enemies". Indo-US ties, in my perception, are quite close at their core because of our common affinities, aspirations, our love for Democracy and Freedoms, for pursuit of curiosity and excellence etc.. So, when President Kennedy rushed military aid to India post-haste after our perfidious "Bhai" (brother to the North) had plunged a dagger in Nehru's back, it did not surprise me. We may be feeding the world now but we have not forgotten how US practically fed us by supplying wheat under PL480 for years and then showed immense graciousness when President Johnson wrote off all the costs of that aid, a gargantuan amount in Indian rupees. We Indians, fresh out of colonialism, were a prickly lot then and had made sure that President Johnson returned home from his visit to India, thoroughly irked. It is because of that core strength that Indo-US ties have endured through some very trying times and shall always endure!
i think we r going 2 b too much dependend on them which is not right in a long run also the indian were pointing out again n again that they dont want 2 b dependend on us on energy sector when we were talking abt IPI......keeping this in mind i think we should also not get carried away
@G. Din: That is why I am saying. Sometimes, the promises from the other side are never kept. It is not a threat to India, but a lesson to be cautious about. By the way, contrary to your perception Indo-US ties are never at the expense of the other, past and now.
I think India has enhanced it's capacity to produce oil products but not surplus as yet.Any export will put pressure on local consunmption which India govt knows well.I hope there is nothing about sharing the little meat left on the bone.Both countries have corrupt politicians and burecrates.
Being part of oil industry of India, let me mention that India is net importer of crude oil and has surplus refining capacity at the moment. Also, some new refineries , like in Punjab are land locked and hence have no option but to xport surplus transportation fuel like petrol. Other refineries like in west coast in Gujarat, are taking advantage of fiscal benefit given by Govt by exporting the finished product to various countries including Iran, Saudi. Pakistan can also take advantage of this distorted policies of our govt both at centre and state, but in the process tax payers money is being used to fund exports. Every country makes decision which is in their larger interest , this cannot be disputed. Nevertheless with mistrust existing between both neighbors and am sure there must be immense pressure from existing suppliers to Pakistan, be that Kuwait or oil cos like Shell etc in Pakistan to oppose imports from India, it will not be easy to import from india. We are sure, Pakistan shall make right calculations and take decision in its interest without coming under pressure from other vested interests.
The solution is to have multiple supplier and as you develop confidence increase the amount you import from India. This is a solution that any of the negotiators could have thought of the no is from the deep state
@Noor:
It is Pakistan that wanted to import, so don't worry. India can use what it refines or sell it to other countries. Relianace is trying to buy large gas station networks in the U.S to export its gas and diesel to U.S.
@Noor:
So, you are saying India should toe crazy Pakistans line and support it like good neighbor. Again, grandiostiy of thought was never in short supply in Pakistan.
India is not the one short on petroleum products, Pakistan is and you don't have any money to pay for it either and purse strings are tightening in Washington, Saudi and Kuwait, etc. are not coming to your help either. Ask yourselves why before mouthing off.
Not going to happen in this universe ever.
@John B: "What I am afraid of is that if PAK does mischief in AFG with diesel imported from India, it won’t look good on India. " Remember John Foster Dulles, John B.? The fact that Pakistan used all the military materiel supplied to them by John Foster (to fight communists) to attack India did not look good on US of A. You did it even though you had been given a fair warning by India of that happening. Does America now understand how US forced India to tilt its non-alignment in Soviet Union's favour? Supplying a commodity like diesel for public civil consumption is not the same as supplying lethal weaponry. So your veiled threat to India is mere chicanery! India did not care then and India doesn't care now!
Before signing any deal between India and Pakistan. Both the countries should sign no war pact for 30 years.Then there will be peace and prosperity in the sub-continent .otherwise only export and import will not bridge the gap of uncertainty and mistrust
Thanks for the helping hand but never forget the principle of not being dependent on any outsider for your energy requirements. With BYCO's new refinery commencing its production within three months, Pakistan will be surplus in refined products of POL.
Agree with Pakistan's decision. Oil/Fuel is far too important a factor for the economy to create such dysfunctional dependencies for its procurement. Similar arguments go for the oil pipelines passing through Pakistan headed for India. Until the fundamentals of our relationship change, these are all akin to wishes on a cloud.
A helping hand refused. What more can one say.
Good. Pakistan should be happy pay 35% more to their Arab brothers for the same product they could have imported from India. Isn't it in India's strategic interest to help Pakistan spend more and get into more external debt?
Same people were urging India to go for the IPI pipeline. Hypocrites!
In view of the distrust shown by Pakistan, India should seriously review its decision of extending helping hand of exporting electricity and oil to this country. It has proved beyond reasonable doubt that India despite putting his best foot forward to nomalise relations with Pakistan cannot change the warped mindset of its neighbour.
Refusal on directions from military establishment....... we common people trust India more than our military establishment because we know all three wars were started by our military and lost by our military.Only threat to country’s security is military establishment's mentality.
Trade should be limited, till resolution of Kashmir & water problems with India.
Moreover, India should assure that it will contribute positively at any international forum, openly or covertly, like a good neighbour.
Next we would like to de-militarize the whole sub-continent & have good trade for development and progress of both countries' people.
I believe the surplus jet fuel story, and PAK concern as well the plan to import.
What I am afraid of is that if PAK does mischief in AFG with diesel imported from India, it won't look good on India.
On the other hand, if import starts, very likely PAK will not be interested in AFG, since her economy will be growing.
Calculated risk for India in international front and PAK has nothing to lose.
If PAK does mischief with India, India can always turn off the pipe.
I for one would not blame Pakistan for its decision. It takes time to build trust. Pakistan is expecting war to break out any time, either with India or US or Afghanistan. India would have and should have done the same in similar circumstances. The fact that discussions on trade of such sensitive items ate taking place between India and Pakistan itself is a welcome change.
For those who are bewildered thinking India doesn't have oil, let me inform them that India has top class Oil refineries.
India for example buys crude oil from Iran and refines them into usable fuel.
No to india's oil.
lol