While the world is projected to save over $1.3 trillion from oil price fall, Pakistan has yet to reap the benefit as its oil import bill soared during the first five months of this fiscal year compared to same period last year.
The benefit of low international oil price has partially been mostly passed on to the domestic consumers in the shape of two monthly cuts since Nov 1.
A report of the State Bank showed that the country paid a total of $6.69 billion for the import of petroleum products and crude oil during the July-Nov 2014-15. The amount was higher than the import bill of the same period last year which was around $6.43bn.
Since June, oil prices started falling from $115 per barrel to $60 per barrel in the third week of December. The massive cut in the oil prices created a great opportunity for countries like Pakistan, China and India to save foreign exchange, slash oil prices for domestic consumers, and allow the savings to be spent for growth.
However, the State Bank’s report shows the bill for both petroleum products and crude oil increased despite sharp cut in the oil rates as imports have surged in the last year.
