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Vol. IX Issue. 6
India seeks land passage to Pakistan for fuels

24 July 2012

July 19, 2012. India asked Pakistan to allow transportation of fuels and petrochem products in truck or rail tankers, and proposed laying a pipeline to Lahore eventually for wheeling petro products. India made the demand at the first meeting of an experts group that has been set up for starting bilateral trade in petroleum products. Pakistan had lifted ban on import of petrol from India with the rider that consignments can only be brought in through sea routes. Pakistan allowed diesel imports from India in 2009 with similar condition. Due to this restriction, Indian refiners have found it difficult to match the rate Pakistan gets from its ally Kuwait. Indian refiners will be able to compete effectively if land route is opened. They can then truck fuels from HPCL-Mittal Energy Ltd's refinery in Punjab's Bhatinda or IndianOil Corporation's depot at Jalandhar depot, which are at a short distance from Lahore, Pakistan's main distribution hub. India also suggested that Pakistan should allow solid products like petcoke, sulphur and chemicals to be transported in trucks via the Attari-Wagah border post. Now, Pakistan allows only rail movement for these items.

      
 
 
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