Malik refutes Bilawal's claim, reiterates ‘Russia to sell us discounted oil'

Minister of State for Petroleum Musadik Malik has reiterated that Russia will, in fact, give Pakistan crude oil at discounted rates, contradicting Foreign Minister Bilawal Bhutto-Zardari's claims that "Pakistan is not getting cheap energy from the energy-rich country".

Bilawal, in an interview with PBS NewsHour, denied reports that Pakistan is "pursuing or receiving" any discounted energy from Russia, saying that the country does have energy insecurity and it is exploring various avenues to expand areas to get energy.

However, the federal minister did not outrightly reject the foreign minister's statement and said that he is, in fact, right. “At this time, we are not taking any oil from Russia, however, I haven’t watched Bilawal Bhutto’s detailed interview,” he said at a press conference in Islamabad Friday.

Malik said that the process of getting cheaper oil from Russia is moving ahead. “Details of matters in this regard, which have been agreed with Russia, will be handed over to the foreign ministry so that there isn’t any ambiguity."

He added, "It is our responsibility to take the Ministry of Foreign Affairs onboard. Our ministry needs to do extra work on this issue.”

Bilawal's comment came just a few days after his cabinet colleague Malik had claimed that Pakistan is seeking oil at discounted rates from the energy-rich country.

Speaking on the talks being held with Russia, the minister said that it only happened after discussions with Pakistan’s refineries.

Malik added that crude oil will help reduce the cost of energy in the country and it will be possible to refine two types of Russian crude oil in Pakistan’s refineries — Sokol and Eurol.

The minister of state went on to say that an impression of Pakistan defaulting is being spread, even though nothing as such is happening. The Asian Development Bank wouldn’t be signing agreements with us if that would have been the case.

He said that the ministry has told gas companies to not reduce pressure during mealtimes including breakfast, lunch, and dinner. However, the minister said that it doesn’t mean there won’t be gas other than these times.

“We have told the companies that gas pressure can be reduced outside these hours, but it has to be increased during mealtimes."

The energy minister said that they are working on a framework of an agreement with Azerbaijan regarding gas, and they are trying to get one LNG cargo in January.

Compared to last year, there will be one additional cargo each in January and February, he said.

On December 5, Malik, after visiting Moscow, had claimed that Russia agreed to provide crude oil as well as petrol and diesel to Pakistan at discounted rates.

But Malik insisted in the press conference today that Russian officials had said they would give cheap crude oil, diesel and petrol to Pakistan and that Russia would only give the same kind of concessions that it gives the rest of the world.

He said after Pakistan receives discounted oil from Russia, it will help lower energy prices. “When the energy cost goes down, the cost of transport and manufacturing will go down … consequently, the price of every item in a shop will go down. This is the prime minister’s vision.”