In an effort to improve the level of economic cooperation and expand the "abikäe''oma friendly neighbor, India on Wednesday offered to export petrol, diesel and other petroleum products in Pakistan. Should there be an agreement, India could even build a pipeline through their products.
guarantee
"India mooted the proposal of exporting petroleum products, including gasoline and diesel, Pakistan. They have shown interest.
Over the next few weeks, preparing the details,''oil and natural gas minister Jaipal Reddy told reporters here after meeting with his Pakistani counterpart Asim Hussain. India announced that it is prepared to supply oil products to Pakistan and even to build a pipeline through neighboring countries was the same as the long-term offtake guarantee.
Existing refining capacity in Pakistan meets only half of the total domestic requirement. On the other hand, India is now almost a quarter of its exports to 185000000-ton capacity.
Transport costs
While Pakistan is allowed to import diesel from India, it still prohibits imports of gasoline and other petroleum products. None of the Indian refineries are still able to export to Pakistan of diesel fuel because it can be discounted price gulf states like Kuwait.
"Giving India Dock petrol and petroleum products in Pakistan is the main advantage of savings on transport costs as a number of refineries in India are located near the Indo-Pak border,''Mr. Reddy said. Mr. Hussain said the Pakistani government did not import their oil products, because of all imports to private contractors.
Joint Working Group on petroleum and petrochemical products, was recently formed to go into detail as to facilitate trade between the two countries in this sector, which includes infrastructure upgradation and augmentation of railway, customs facilitation, creation of banking channels, etc. The first meeting of the group were to happen earlier than the Petroleum Minister, Mr Reddy said.
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