H1 oil import bill up 32.8% on high prices, weak peso

By Lenie Lectura - September 21, 2018
https://businessmirror.com.ph/h1-oil-import-bill-up-32-8-on-high-prices-weak-peso/

THE country’s net oil import bill in the first half of the year amounted to $5.678 billion, up by 32.8 percent from $4.277 billion in the same period a year ago, mainly on account of higher oil prices in the world market. Bigger import volumes and a weak peso were also factors.

Net oil import is the difference between the country’s net imports and exports.

The oil import bill from January to June this year stood at $6.31 billion, up by 34.4 percent from first half 2017’s $4.69 billion. “This was attributed to the combined effects of higher import cost and increased import volume of crude oil vis-à-vis last year,” the DOE explained.

The total product import cost averaged $74.812 per barrel vis-à-vis $57.962 per barrel in the same period last year.

Also a factor is the foreign-exchange rate. The peso was weaker during the period, averaging 51.974: $1 compared to 49.928:$1 in the same period last year.

Of the total imports, 53.8 percent comprised finished products and 46.2 percent was crude oil.

About 90 percent of the total crude mix was sourced from the Middle East, of which 37.7 percent came from Saudi Arabia, the top supplier of crude oil in the country.

Next is Kuwait with a 24.6-percent share of the total crude mix, followed by the UAE, Qatar and Oman with 18.6, 6.2 and 2.6-percent share, respectively.

The Philippines also sourced oil from Russia, equivalent to an 8.4-percent share.

On the other hand, the country’s petroleum exports earnings for the period rose by 51.5 percent from $417.8 million in the first half last year to $633.1 million this year.