Oil import

Statistics showed that the oil import bill reached $5.86 billion in the first seven months of the fiscal year 2011-12, up by 47.38 per cent from $3.975 billion last year.

The surge in import of value-added petroleum products showed that Pakistani refineries were operating on low scale because of circular debt.

Import of crude oil was up by 18.21 per cent to $2.90 billion as against $2.45 billion in the same period last year.

This increase was because of rising oil prices in the international market. WTI crude is now trading above $100 for quite some time.The depreciation of rupee further added up the import value of oil during the period under review.

There is also a danger that if US- Iran relations go further tense it may push oil above 150.