The consumption of furnace oil will increase by 51 percent due to induction of new power projects and new rental power projects (RPP), increasing its total consumption by the power sector to 12.015 million tons as against 7.767 million tonnes last year.
According to the sources, the new power projects will require 0.750 million tonnes of furnace oil and 2.517 million tonnes of furnace oil for new rental power projects. Pakistan was expected to spend a whopping 9.910 billion dollars on oil imports during the 2009-10 financial year, the sources said.
This is expected to procure 1.3615 million tonnes of refined petroleum products and 63.136 million barrels of crude oil. The total consumption of petroleum products has been projected to increase by 25 percent to 23.678 million tonnes in 2009-10 as against 18.958 million tonnes consumed last year.
Total spending on petroleum products, both local and imported, has been projected at 10.234 billion dollars as against 9.271 billion dollars last year. The projected oil import bill is 985 million dollars higher as compared to that of last financial year. Pakistan will meet its requirements of 4.772 million barrels from local crude oil, costing 334 million dollars.
According to sources the country will have to spend 5.490 billion dollars on the import of 11.365 million tonnes of refined petroleum products that includes high speed diesel (HSD), furnace oil (FO), JP-1 and motor spirit (MS). In addition, 4.420 billion dollars are forecast to be spent on import of 63.136 million barrels of crude oil if its average price remains below 70 dollars per barrel in the international market.
Pakistan will have to arrange financing of 2.560 billion dollars on the import of four million tons of HSD as against 2.669 billion dollars on the import of 4,261,700 tonnes HSD last year. The average price of HSD in the budget was estimated at 640 dollars per tonne.
The consumption of HSD will increase by five percent to 7.917 million tonnes this year as against 7.50 million tonnes last year. The import of furnace oil has been projected at seven million tonnes, costing 2.730 billion dollars with budgeted price of 390 dollars per tonne in the international market. The import bill of 5.153 million tonnes of furnace oil was 1.946 billion dollars last year.
Pakistan is eyeing to import 190,000 tons JP-1 at a cost of 119 million dollars. The average price of JP-1 in international market has been estimated at 625 dollars per metric tonnes. The import of MS has been calculated at 175,000 tonnes, costing 81 million dollars. Pakistan spent 83 million dollars in foreign exchange on import of 180,000 tonnes MS last year.
Pakistan will be importing 27.616 million barrels of Arabian Light crude oil, costing 1.933 billion dollars; 19.512 million barrels of Iranian light crude oil worth 1.366 billion dollars; 7.006 million barrels of Upper Zakum crude oil costing 490 million dollars; 9.002 million barrels of Murban crude oil, costing 630 million dollars. The country will not be importing crude oil from Qatar Marine and there will be no import of Iranian heavy crude oil also.