Oil import bill surges by 53.9% – Alfalah Securities Limited

Karachi: Pakistan’s oil import bill has witnessed a phenomenal YoY rise of 53.9% in the first four months (Jul-Oct) of the current financial year as the total oil import bill has reached to a level of USD 5.013 bn against USD 3.257 bn in 4MFY11, mainly on account of soaring oil prices in the international market and increased consumption of furnace oil for energy production.

According to Alfalah Securities, the import of crude oil out of the total oil import bill amounted to USD 1.696 bn in the 4MFY12 against USD 1.341 bn in the same period last year, witnessing a rise of 26.47% while the import of petroleum products touched a USD 3.495 bn mark during the 4MFY12 period against USD 1.915 bn last year, showing a rise of 82.5%. A hike in imports of crude oil and petroleum products clearly identifies a high demand of petroleum products in the domestic market which was not being fulfilled by the local refinery’s capacity.

Market Outlook:
Sell on Strength.