Rising crude oil imports boost exports
ISLAMABAD: Crude oil imports increased by 17.81 per cent in the first five months of FY25, which prompted local refineries to produce more petroleum products than anticipated and boost exports.
Preliminary estimates suggest that the increase in local production of petroleum products and their exports in the past few months will likely boost economic growth in the current fiscal year.
Data compiled by the Pakistan Bureau of Statistics (PBS) showed that petroleum crude imports increased by 5.44pc in value and 17.81pc in quantity in the July-November FY25 from a year ago. In quantity, the crude import reached 3.974 million tonnes from 3.373m tonnes in the same period last year.
The rise in crude oil imports indicates booming transportation activities, indicating improved business activities. It also reflects higher capacity utilisation of local oil refineries compared to last year, which increased their profitability. The surging crude oil imports also translated into higher petroleum product production by local refineries.
The PBS data for the first four months of FY25 showed that the output of all 11 petroleum products was higher by 1.33pc than last year. Further analysis showed that the local production of high-speed diesel primarily used in the transport sector and agriculture — was up 3.31pc in 5MFY25. However, petroleum production post a paltry negative growth of 0.60pc during the period under review.
The furnace oil production was up by almost 0.86pc year-on-year in 5MFY25. Jute batching oil output was up by 67.33pc, solvent naphtha 40.16pc and that of kerosene by 30.06pc.
However, jet (airline oil) production dipped by 12.44pc in 5MFY25. LPG production also saw a decline of 8.96pc.
Surging exports
Consequently, exports of petroleum products were up by 230.33pc on a year-on-year basis in 5MFY25 to $236.71m. The details show that growth was recorded in almost all petroleum products, including petroleum crude.
The export of petroleum crude surged to 40,552 tonnes in 5MFY25 against no exports over the corresponding period of last year. Similarly, the exports of petroleum products, excluding top naphtha, saw a growth of 245.34pc to 417,539 tonnes in 5MFY25 against 120,905 tonnes last year. Naphtha topped the petroleum exports, recording a growth of 30.11pc to 27,127 tonnes.
With the rise in local production of petroleum products, imports saw a negative growth of 10.34pc in the first five months of FY25.
Published in Dawn, December 22nd, 2024