India agrees to supply Pakistan with Petrol

[bhramos]

Seeking to cash on the "thaw'' in relations and opening up of borders for liberalised trade between the two neighbours, Pakistan on Friday sought immediate supplies of petrol from India through the land route to meet the widening deficit and flaring demand in its country.(sevenoya)

"I met the Petroleum Secretary, G.C. Chaturvedi and discussed the issue of import of petrol from India,'' Pakistan Secretary for Petroleum and Natural Resources, Muhammad Ejaz Chaudhry told journalists on the sidelines of the 7th Asia Gas Partnership Summit here.

Responding to the reqeust from the neighbour, New Delhi immediately agreed in-principal to supply petrol to Pakistan and it was decided that officials of the two countries will meet sometime next month to finalise the modalities for the export of petrol from India. Both the sides also discussed the issue of supply of petrochemical products to Pakistan from Indian refineries as Pakistan now has allowed use of land route through trucks for supply of such products that are in great demand with the industry across the border.

Both the sides, which are keen on commencing supplies of petrol and other related petroleum commodities by next month, will work out the issues pertaining to quality and specification of petrol. India has indicated that it will supply petrol to Pakistan Bhatinda, where Hindustan Petroleum Corporation Limited is about to commission a refinery. Also, Indian Oil Corporation (IOC) has hinted at supplies of petrol and diesel along with petrochemical products from its fuel depot at Bhatinda and from Mathura and Panipat refineries.

Mr. Chaudhry said Pakistan was keen on importing other fuels as well but for the time being it has requirement of only petrol. The biggest hurdle is the fuel

specification – while Pakistan sells Euro-II grade fuel, Indian refineries produce petrol and diesel meeting Euro-III & IV standards. ``We will call on India if we need diesel and jet fuel in future. When we need jet fuel or diesel, our first port of call will be India,'' he remarked.

While the fuel exports, to begin with, will be through tankers, talks were also held on putting in place a dedicated pipeline for such supplies in future.

Mr. Chaudhry also discussed the transit fee to be paid for the proposed Turkmenistan-Afghanistan-Pakistan-India gas pipeline. 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,'' a senior Ministry official said.

Turkmenistan has already finalised the gas sale purchase agreement with all the participating countries for the $7.6 billion pipeline project, which will supply 3.2 billion cubic feet of gas daily.

Mr. Chaudhry said Pakistan was also keen to import gas from India as well. State-owned GAIL's newly-commissioned gas pipeline from India's west coast to Bhatinda in Punjab is barely 45 Km from the Pakistan border and it can be extended to Lahore.

The Hindu : News / National : Pak seeks petrol supplies from India; New Delhi agrees immediately

 

[Blackwater]

WTF tom supply pampers also to pakistan.

 

[p2prada]

This is what I am talking about. Make them dependent on us. Have them buy everything from us, including the kitchen sink. Someday nearly everything they have must have a Made in India tag on it.

 

[Bangalorean]

I hope we are selling it at above market price, at a greater profit than what would be obtained domestically. I would be very angry if it were otherwise. We are already a fuel-deficit and energy-deficit nation.

What we can probably do is, push for a higher Ethanol blend in domestic fuels, and the surplus petrol after crude refinement can be sold to the Pakis - at a good profit margin of course.

 

[nitesh]

^^
It is "in principle" agreement like the power selling thing

 

[Mr.Ryu]

Then center may think of no more rise in petrol or atleast reduce the half way TAX on petrol

 

[noob101]

I thought that Paki got it oil for KSA at discounted rates?

 

[Sunder singh]

but why we having huge oil deficit

 

[Yusuf]

Yeah sure. Soak them in petrol and then put the light

Suddenly Pakis are realizing that the fastest and easiest way is across the border and not across the himalayas.

Well knowing them, it won't make any difference to their attitude towards us. Kutte ki dum

 

[p2prada]

I hope we are selling it at above market price, at a greater profit than what would be obtained domestically. I would be very angry if it were otherwise. We are already a fuel-deficit and energy-deficit nation.

What we can probably do is, push for a higher Ethanol blend in domestic fuels, and the surplus petrol after crude refinement can be sold to the Pakis - at a good profit margin of course.

Reliance and other industries have set up refineries which solely cater to exports of petroleum products. They have a govt contract stating a lot of their refined fuel can be exported overseas for a profit so as to incur less loss when selling at subsidized prices in India.

Reliance in particular imports oil only to export refined petroleum products. They have a deal with the govt that enables them to sell their gas deposits outside as well(but not all of it).

Pak will buy petrol at current market rates and will subsidize the fuel for their population. But that's their problem. Btw, I mean international market rates which are higher and not the rate at which we buy from our domestic petrol bunks.

We can go for ethanol blended vehicles, but that will require you to sell your current vehicle and buy an ethanol compatible one at your own cost. Moving to ethanol products is something we cannot afford as a country, at least as of today.

 

[Oracle]

Yeah sure. Soak them in petrol and then put the light

Suddenly Pakis are realizing that the fastest and easiest way is across the border and not across the himalayas.

Well knowing them, it won't make any difference to their attitude towards us. Kutte ki dum

Too much bonhomie for some time now. Are we headed towards another Kargil?

 

[agentperry]

now if they raise petrol prices,,, i will murder oil sec and minister

 

[peacecracker]

Too much bonhomie for some time now. Are we headed towards another Kargil?

right.. pakis are known for backstabbing. many Indians and political leaders don't know the way of life in pakistan. religion dictates everything. a war against India is a war against Infidels. that's their mentality. and....still we want to trade? We cannot make them dependent because, pakistan has Chinese daddy supplying everything el cheapo.

 

[Yusuf]

now if they raise petrol prices,,, i will murder oil sec and minister

Bad news coming up. Oil cos have more or less finalized on a hike. 3-5 a litre

 

[natarajan]

already pakistan has cheap petrol and why should we supply ?

 

[Bangalorean]

Reliance and other industries have set up refineries which solely cater to exports of petroleum products. They have a govt contract stating a lot of their refined fuel can be exported overseas for a profit so as to incur less loss when selling at subsidized prices in India.

Reliance in particular imports oil only to export refined petroleum products. They have a deal with the govt that enables them to sell their gas deposits outside as well(but not all of it).

Pak will buy petrol at current market rates and will subsidize the fuel for their population. But that's their problem. Btw, I mean international market rates which are higher and not the rate at which we buy from our domestic petrol bunks.

We can go for ethanol blended vehicles, but that will require you to sell your current vehicle and buy an ethanol compatible one at your own cost. Moving to ethanol products is something we cannot afford as a country, at least as of today.

All petrol sold in India is already 5% Ethanol blended (except in N-E and J&K).

It will be increased to 10% shortly. And the target is to increase it to 15% by 2017.

Ethanol blending till 10-15 % has no adverse effect on today's petrol engines. The question is, as blend percentage increases, what will you do with that 15% petrol that came out of the refining process? What I was proposing was to sell it to the Pakis.

Any move towards higher blends of Ethanol (upto 85% like Brazil has done), will require a directive to car manufacturers to build vehicles that can run on flex fuel. Such changes are gradually enforced, over a period of 10-15 years, like emission tests were introduced in India, and stringent pollution norms. No one had even heard of this stuff in the 90s.

 

[Drsomnath999]

what bag of B.S man these blood sucking UPA government can sell petrol to pakis but they dont hesitate to hike the petrol prices by 3-4 rupees .
iinn sallon ko jutto aur chapal se pitna chahiye jese pawar ko mara gaya tha .

 

[Ray]

Hopefully with the money the GOI will reap, they will cut the whining about losses!

 

[Singh]

nobody uses petrol in Pakistan, all cars run on CNG afaik

 

[p2prada]

All petrol sold in India is already 5% Ethanol blended (except in N-E and J&K).

It will be increased to 10% shortly. And the target is to increase it to 15% by 2017.

Ethanol blending till 10-15 % has no adverse effect on today's petrol engines. The question is, as blend percentage increases, what will you do with that 15% petrol that came out of the refining process? What I was proposing was to sell it to the Pakis.

Any move towards higher blends of Ethanol (upto 85% like Brazil has done), will require a directive to car manufacturers to build vehicles that can run on flex fuel. Such changes are gradually enforced, over a period of 10-15 years, like emission tests were introduced in India, and stringent pollution norms. No one had even heard of this stuff in the 90s.

That's too small. But I was talking about large scale blending of ethanol with fuel.