Pakistan’s import of overall petroleum group rose by 6.97% during the first two months of the current fiscal year (2022-23), compared to the corresponding period of the last year, according to the latest data issued by the Pakistan Bureau of Statistics (PBS).
Imports primarily increased due to a hike in global oil prices. Pakistan is a net importer of petroleum products and Russia’s war in Ukraine resulted in a massive increase in prices of petroleum products.
In 2022, the price of oil per barrel reached 15-year highs, which surpassed $120 per barrel that hit oil import economies like Pakistan very hard.
An official from the oil industry said that it could be mainly the actual import numbers for the month of June and July, when the demand was very high. Besides, the Letter of Credits (LCs) were cleared after a period of 30-60 days. Therefore, the actual dollar spent appeared late.
“You will see a substantial decrease in consumption in the months of August and September, the LCs of which are cleared in September and October, he said. Another official from the industry told The Express Tribune that they don’t trust PBS data as they put dollars, but do not mention quantity. “If the prices in the international markets are high, one has to pay more for the same quantity,” he said.
During the period under review, the total imports of the petroleum group during July-August (2022-23) stood at $3,302.159 million, as against the imports of $3,087.113 million last year, according to the latest data issued by the PBS.
Among petroleum commodities, the import of petroleum products rose by 7.75%, from $1,539.417 million last year to $1,658.647 million during the period under review.
The imports of petroleum crud also increased by 10.46%, from $818.884 million last year to $904,522 million during July-August (2022-23) whereas, the imports of liquefied petroleum gas (LPG) surged by 41.50% from $77.356 million to $109.460 million.
LPG is the fuel of the poor segment, especially used for cooking purposes by those living in the remote areas of Pakistan, including the northern areas.
The increase recorded in LPG imports is due to a dip in the production of locally produced LPG.
The previous government had shut down the JJVL LPG power plant, which led to 15% reduction in locally produced LPG that pushed LPG imports higher.
Published in The Express Tribune, September 17th, 2022.
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