Sunday October 02, 2022

Oil imports hit record levels despite high international prices

July 23, 2022

ISLAMABAD: Despite high international crude and POL prices, the country has imported record-high oil products and crude, both in volume and money terms, on the back of rising U.S dollar strength against the rupee and the government’s decision to raise local POL prices to revive stalled IMF’s program.

Having a record inventory of POL in the country, Finance Minister Miftah Ismail on Thursday hinted to stop the import of furnace oil and diesel for next two months. He said the country “has sufficient stock of diesel, furnace oil, and motor gasoline for two months.”

In a press briefing, he said in view of the availability of the stock, there was no need to import these commodities, which would reduce pressure on the Pakistani rupee, he added.

In June 2022, crude oil imports were at a record high of 1.12 million tonnes (of $838.79 million) against 0.763 million tons ($538.67 million) in the previous month of May 2022. In the same month of last year, its imports were at 0.816 million tons ($382.68 million).

The volumetric imports of crude increase 46.78 percent over the previous month and 37.2 percent over June 2021. In dollar terms, it increased 55.72 percent over the previous month and 119.2 percent over the same month of last year.

Similarly, petroleum products imports were also at a record high in June 2022 in volume and value. In June 2022, importers imported 2.19 million tons of products with a total worth of $2.046 billion—the highest ever in any month in the past.

In the previous month (May), its imports were 1.72 million tons (of $1.47 billion) and in June 2021, it was 1.5 million tons bought with 728.6 million dollars.

In June 2022, the petroleum products’ imports in quantity increased by 27.48 percent over the previous month and 44.6 percent over the same month a year ago. In money terms, during the month under review, its imports increased 39 percent over the previous month and 181 percent over June 2021 imports.

Overall, the petroleum group’s imports in June 2022 increased 146.6 percent to $3.64 billion from $1.47 billion in June 2021 and 37.5 percent over the previous month when its imports were recorded at 2.64 billion.

In FY22 (July-June), petroleum group imports increased by 105 percent to a record high of $23.3 billion.

Of this, the petroleum products imports increased 133 percent to $12.07 billion, crude oil 80.8 percent to $5.59 billion, LNG 90.65 percent to $4.99 billion and LPG imports up by 39.7 percent to $660.7 million.