Pakistan keen on import of petrol from India

March 24, 2012 14:16
Pakistan keen on import of petrol from India

Pakistan, which has shortage of fuel, is looking at starting petrol imports from India using tankers as early as next month but issues of quality and specification need to be sorted out before that. New Delhi has agreed, in-principle, to supply fuel to Pakistan from Bhatinda.

Soon after removing restrictions on import of goods from India, Pakistan has sought immediate supplies of petrol from the country to meet widening deficit. "I discussed importing petrol from India during talks with Petroleum Secretary G C Chaturvedi in here." Pakistan Secretary for Petroleum and Natural Resources Muhammad Ejaz Chaudhry said on the sidelines of the 7th Asia Gas Partnership Summit in New Delhi. Pakistan, which has shortage of fuel, is looking at starting petrol imports from India using tankers as early as next month but issues of quality and specification need to be sorted out before that. New Delhi has agreed, in-principle, to supply fuel to Pakistan from Bhatinda, where Hindustan Petroleum Corp Ltd is about to commission a refinery.  Also, Indian Oil Corp (IOC) has a fuel depot at Bhatinda which can supply petrol and other products to Pakistan. Pakistan, Chaudhry said, was keen on importing other fuels as well but for the time being it has requirement of only petrol. Officials of the two countries will meet next month to finalise modalities. The biggest hurdle is the fuel specification while Pakistan sells Euro-II grade fuel, Indian refineries produce petrol and diesel meeting Euro-III. Chaudhry also discussed the transit fee to be paid for. Chaudhry also discussed the transit fee to be paid for the proposed Turkmenistan-Afghanistan-Pakistan-India gas pipeline.

Officials said India has to pay transit fee to Pakistan and Afghanistan for allowing passage of gas that it wants to buy from Turkmenistan. Similarly, Pakistan has to pay transit fee to Afghanistan.  "We have agreed to have a uniform fee. Pakistan has agreed that it will accept the same fee that India agrees to pay Afghanistan," an official said. Turkmenistan has already finalised the gas sale purchase agreement with all the participating countries for the USD 7.6 billion pipeline project, which will supply 3.2 billion cubic feet of gas daily.

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