Pakistan expects oil imports to rise sharply

ISLAMABAD: Pakistan expects to import more than 22 million tonnes of crude oil and petroleum products in fiscal year 2011/12 (July-June), Petroleum Ministry officials said on Tuesday, a nearly 12 percent rise over the previous year.

Its oil needs are likely to increase, partly due to rising demand in the power sector as it struggles to cope with acute power shortages that are hurting its industry and fuelling anger among the public.

Pakistan imports about 80 percent of its oil needs and spent $14 billion on 18.8 million tonnes of crude oil and petroleum products in the 2010/11 fiscal year, the officials said.

"For 2011/12, imports of petroleum products are projected at 13.67 million tonnes and that of crude oil at 63 million barrels (8.4 million tonnes)," one of the ministry officials said, speaking on condition of anonymity because he was not authorised to speak to the media.

The country imported 12.14 million tonnes of petroleum products and 6.6 million tonnes of crude oil last fiscal year, the official said.

Furnace oil imports, mainly for power-generation, are projected at 8.3 million tonnes, up from 6.7 million tonnes in the previous year, the official said.

Fuel oil imports touched an all-time high of nearly 850,000 tonnes last month, official data showed.

Imports of high-sulphur fuel oil (HSFO) were also at records-high levels, totalling more than 700,000 tonnes, while purchases of low-sulphur fuel oil (LSFO) were at about 130,000 tonnes, figures from the country's Oil Companies Advisory Committee showed.

Copyright Reuters, 2011