India has offered to export petroleum products, including petrol, to Pakistan. Details of the proposal will be worked out in the next few weeks, the Petroleum and Natural Gas Minister, Mr S. Jaipal Reddy, said.
However, exporting petrol may not be easy, as it will require decision-making at the highest levels in both countries. India’s offer to export refined petroleum and petrochemical products by road, rail and sea assumes significance in the backdrop of the forthcoming Pakistan visit of the Indian trade minister.
Speaking to newspersons at a joint press conference with his Pakistani counterpart, Dr Asim Hussain, Mr Reddy said that India has offered to export petrol, diesel, and aviation turbine fuel, fuel oil besides sulphur, polyethylene and polypropylene to the neighbour.
Pakistan is currently importing these products. Imports from India will be advantageous for Pakistan as it will save on the freight cost since several Indian refineries are located close to the India-Pakistan border. The refiners who will benefit include Indian Oil Corporation, Reliance Industries, Essar Oil, and the soon-to-be-fully commissioned refinery at Bhatinda.
As of now, Pakistan has banned imports of Indian petrol. Though it allowed diesel imports in 2009, due to preferential prices offered by Pakistan’s allies such as Kuwait, supplies from India did not really take off.
Mr Reddy also said that Indian refiners would be willing to look at the feasibility of constructing product pipelines to Pakistan, provided long-term guarantees for product offtake can be given by Pakistan.
The total trade between the two nations currently is $2.7 billion, of which India’s exports is $2.3 billion.