The decision in this regard was conveyed to Petroleum Minister Mani Shankar Aiyar when he visited Pakistan early this month, local daily Dawn reported on Thursday.

"Although the import of diesel from India continues to be in the commerce ministry's negative list, the price offered to Pakistan by India is much higher than the middle eastern rates," it quoted an unnamed senior Pakistani government official as saying.

Claiming that Indian diesel cost $3-4 higher per tonne than that from Kuwait and other Arab countries, the official said the decision was conveyed to Aiyar, who was in Islamabad to discuss the Indo-Iran gas pipeline and prospects of Pakistan buying Indian diesel through the Wagah land border route.

India's case was that Pakistan would make substantial savings by importing the diesel from India as it would cut its transport costs.

The official said that even if India reduces its price, the import of diesel from New Delhi through land route is not possible in the foreseeable future owing to Pakistan's internal commitments.

Explaining the reason for not using the land route for diesel import from India, he said Pakistan government had given a "throughput guarantee" of 4.5 million tonnes per annum for the $780 million white oil pipeline project from Port Qasim to Multan.

The paper reported that Pakistan has also refused to import diesel from India through the sea route for the time being.