Oil import bill increased to 35% in 2012

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Pakistan’s oil import bill sharply increased to $14 billion in fiscal year 2012 as against $12.5 billion in the corresponding period of last year, contributing 35% in the total import bill of the country. During FY12, country’s primary energy supplies increased by 0.3% and stand at 64.7mn toe compared to 64.5mn toe in the previous year and major momentum come from gas sector that rose by 4%. According to the statistical data of Pakistan energy year book 2012 the oil and hydro supplies in the country remained under-pressure as they fell by 3% and 10% respectively, despite growing demand in the country. In FY12 gas remained the major source of energy supply that contributed to 50% as compared to 48% in previous year. Furthermore the energy year book disclosed that of the total oil consumption, country’s reliance on the imported oil decreased to 83% as compared to 84%. Though declining by 1pps but such a high reliance on imported oil depicts country’s vulnerability to uncontrollable commodity shock that was witnessed in FY08. Reliance on imported energy primarily arises from increased demand of petroleum products, particularly furnace oil (FO), which is used primarily for power generation. After adjusting transmission, system losses and non-energy use, final energy consumption of the country during FY12 stood at 40.0mn toe, up 3% as against 38.8mn toe in FY11, according to statistics of Energy Yearbook.