IOC keen to sell diesel to Pakistan
By Our Corporate Bureau | 06 Jun 2005
Islamabad:
The
Indian Oil Corporation (IOC) has offered to sell 320,000 tonnes of diesel
at a discount to Pakistan through the Wagah border. Petroleum Mani Shankar
Aiyar, who currently on a visit to Pakistan is expected to ask for the removal
of diesel from Pakistan''s list of negative imports from India. Aiyar, who is on a state visit to Pakistan from June 6-8, will be meeting Pakistani commerce minister Humayun Akhtar on Monday.
In order to woo Pakistan''s diesel import order, IOC is willing to sell the product below the current landed price, irrespective of the production cost incurred by Indian refineries. Pakistan, which imports 2.5 million tonnes of diesel per annum from Kuwait, does not have any refinery in Lahore-Multan area, which receives products either from inland refineries or from Karachi by rail or road. The company has offered 320,000 tonnes of diesel for six months beginning July.
Official have said that the product would be priced in such a way that the landed cost at Lahore is at least 50 cents lesser per barrel than the landed cost presently incurred by Pakistan at Lahore. Actual saving shall, however, be decided after negotiations with Pakistan Oil Companies before the contracts are finalised.
