Import of Russian crude oil to have positive impact on micro users

An independent energy analyst Nadeem Mirza has welcomed the import of Russian crude oil as the import of Russian crude oil will have several impacts on micro users in Pakistan, particularly in terms of energy availability, affordability, and reliability.

Importing Russian crude oil diversifies Pakistan’s energy sources, reducing the risk of supply disruptions.

This increased energy security ensures a consistent and reliable supply of oil, which is crucial for micro users, such as households and small businesses, to meet their energy needs.

Speaking on the occasion of a gathering of students from various top universities, in Lahore, he said that access to Russian crude oil can potentially contribute to price stability in the domestic market.

At the same time diversification of energy sources can help mitigate price volatility caused by geopolitical events or fluctuations in global oil prices, Mirza added.

Talking about the policy dynamics he said that the evolving policy dynamics in the Iran-Russia-Pakistan triangle have played a role in shaping Pakistan’s approach to energy partnerships. Due to geopolitical and economic factors, Iran’s ability to export oil has faced constraints, including international sanctions.

As a result, Pakistan has had to explore alternative options, and Russia has emerged as a viable partner in the energy sector.

The changing policy scenario reflects a shift in Pakistan’s energy strategy, where it is seeking to diversify its energy sources and establish stronger ties with regional and global players.

By expanding its engagement with Russia, Pakistan aims to leverage the country’s vast energy resources and expertise to meet its energy needs.

Answering a question regarding better product availability, he said importing Russian crude oil can enhance the availability of petroleum products in Pakistan.

This will help to ensure an adequate supply of fuels like gasoline, diesel, and liquefied petroleum gas (LPG), which micro users rely on for transportation, energy generation, cooking, and various other purposes. Improved availability reduces the risk of shortages and ensures uninterrupted access to essential energy resources, Mr. Mirza answered.

He said that the import of Russian crude oil introduces competition in the energy market, which can benefit micro users. Increased competition among suppliers can lead to improved services, better pricing, and enhanced customer support. Micro users may have access to a wider range of petroleum products and services, giving them more options to choose from based on their specific needs.

It’s important to note that the impact on micro users will also depend on various other factors, including government policies, distribution mechanisms, and local market dynamics.

However, in general, the import of Russian crude oil is expected to have a positive influence on micro users in terms of energy availability, affordability, and reliability, Nadeem Concluded.