Oil imports: Mistrust hounds plan to import fuel from India

Over-reliance on India for strategic products could imperil security.

ISLAMABAD:
Pakistan has refused to import jet fuel from India citing security reasons, The Express Tribune has learnt.

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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