With its annual diesel requirement already tied up from the Middle East,Pakistan is baiting India for a huge discount on the fuel before placing order for its seasonal incremental demand. India has declined to commit any price.
At a meeting between oil minister S Jaipal Reddy and his Pakistani counterpart Asim Hussain,Islamabad indicated that it could buy about a million tonne of diesel to meet its extra demand but it wants New Delhi to match the price discounts that Kuwait offers.
We have stated that we want to look into price formulations before deciding, Hussain told reporters on the sidelines of the Petrotech 2012 oil and gas conference. We are looking at prices (to be offered by Indian firms).
Petroleum ministry officials,however,clarified that since refineries were commercial entities,the government was in no position to influence the pricing.
Even state-run firms with refineries close to the border could not sell diesel at rates lower than what they charge the domestic consumers,they said.
Pakistan imports up to five million tonne of diesel from Kuwait every year as the fellow Islamic nation gives a substantial discount and an extended credit period to make the payments. Of late,Kuwait Petroleum Company has been asking Pakistan State Oil to clear long-pending dues.