Wednesday, October 17, 2012

Pakistan looking to import petroleum from India

Pakistan’s Minister of Petroleum and Natural Resources, Asim Hussain, said that despite political differences, the Arab nation is ready to import petroleum from India.
The minister explained the possible petroleum agreement at the Petrotech-12 oil and gas conference. The increasing trade ties between the two countries are being seen by experts as a way of easing political tension.
At present, the Hindustan Petroleum Corp Ltd (HPCL) has been in discussions with Pakistani officials on the possible exporting of oil and gas. However, an official from HPCL, the agreement will only push through based on the right prices, and continued on saying the other party is demanding low prices for the petroleum products.
Oil deficit in the predominantly-Muslim nation has seen it allowing India to export fuel. However, the neighboring subcontinent has been having trouble competing with Kuwait’s lower fuel price offerings. Pakistan demands now to lower fuel rates is being seen as “economically not viable”.
India, however, has been granted the most favoured nation status in the recent petroleum trade agreements. If the agreements come to a reality, HPCL will be benefitting the most, and plans already on the way to increase the company’s productivity to meet demands from Pakistan.
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