When HPCL and Lakshmi Mittal started the working of the Bhatinda Refineries in Punjab, many have doubted that the refinery is ‘an excess capacity’ given the market conditions in the region. But now, an unexpected opportunity is awaiting the plant. The windfall opportunity is that Pakistan is likely to import petrol from India.

                Bhatinda is just 25 KM away from the border.  If Pakistan, facing acute fuel shortages goes for import of petrol from India, the yet to be commissioned refinery will be making revenues as well as history. For Pakistan, India is the most geographically suited source to import petroleum products as other sources including Iran and China are distant and separated by mountains. On the other hand, for India, petroleum products are one the leading export item, even though crude is imported heavily.

                Pakistan’s import of petrol and its impact will not be confined to the HPCL refinery. More than anything else, it may mark the beginning of healthy Indo-Pak border trade. In South Asia, the intraregional trade is one of the lowest in the world due to lack of political understanding between India and Pakistan.

                The possibility of India- Pak energy trade will be finalized with the scheduled talk between the officials of the two countries in the coming week. Pakistan’s secretary for petroleum and natural resources Mr Mohammad Ejaz is leading the delegation of his country. 

When HPCL and Lakshmi Mittal started the working of the Bhatinda Refineries in Punjab, many have doubted that the refinery is ‘an excess capacity’ given the market conditions in the region. But now, an unexpected opportunity is awaiting the plant. The windfall opportunity is that Pakistan is likely to import petrol from India.

                Bhatinda is just 25 KM away from the border.  If Pakistan, facing acute fuel shortages goes for import of petrol from India, the yet to be commissioned refinery will be making revenues as well as history. For Pakistan, India is the most geographically suited source to import petroleum products as other sources including Iran and China are distant and separated by mountains. On the other hand, for India, petroleum products are one the leading export item, even though crude is imported heavily.

                Pakistan’s import of petrol and its impact will not be confined to the HPCL refinery. More than anything else, it may mark the beginning of healthy Indo-Pak border trade. In South Asia, the intraregional trade is one of the lowest in the world due to lack of political understanding between India and Pakistan.

                The possibility of India- Pak energy trade will be finalized with the scheduled talk between the officials of the two countries in the coming week. Pakistan’s secretary for petroleum and natural resources Mr Mohammad Ejaz is leading the delegation of his country. 

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