A serious shortage of POL products and therefore power is looming in the country as all local oil refineries have suspended fuel supply to Pakistan State Oil (PSO) for non-payment of dues.
With the receivables of PSO swelling to over Rs 182 billion, all local refineries from where the oil marketing company purchases fuel have halted their supply due to the non-payment of dues of around Rs 104 billion owed by PSO. Though, three major oil refineries including Attock Refinery Limited (ARL), National Refinery Limited (NRL) and Byco had already halted supplies to PSO, other refineries have also discontinued their supply, sources in PSO said.
To restore the supply from these refineries, PSO has already requested the ministry of finance to at least release Rs 60 billion in order to avoid default on international payments and to clear the dues owed to local refineries. “Refineries have indicated their disability to provide further fuel until the dues are cleared,” they said adding “PSO is also receiving constant reminders from refineries for payments”.
In addition the oil marketing company also owes around Rs 39 billion to international suppliers According to a new statement clarifying the status of major receivables and payables of PSO as of yesterday morning sent to the finance ministry by the state corporation, the net receivables from various government institutions plus Karachi Electric Supply Company (KESC) has swelled to Rs 182.765 billion.
The statement shows that government institution including WAPDA, HUBCO, KAPCO, PIA, OGDC and Pakistan Railways owed Rs 73.424 billion, Rs 82.561 billion, Rs 36.983 billion, Rs 2.217 billion and Rs 1.174 billion to PSO, respectively. KESC owed Rs 4.347 billion to the oil marketing company as well as dues accumulated on price differentials under the GLMP (KESC) in the summer and winter of FY10.
On the other hand, PSO is in debt to PARCO, Pakistan Refinery Limited (PRL), NRL, ARL, Byco and other refineries which reached Rs 39.534 billion, Rs 12.880 billion, Rs 9.241 billion, Rs 37.308 billion, Rs 4.694 billion Rs 0.614 billion respectively, making the total payables to local refineries to Rs 104.274 billion.
Earlier, PSO through a letter sent to the prime minister’s adviser on petroleum and ministers for finance and water and power has requested to the immediate release of at least Rs 60 billion to resolve the issue temporarily. PSO has also threatened to stop the import of fuel oil from May 15, 2011 to avoid further default. Under the present crisis, a serious shortage of POL products and power in the country is likely to add to the crippling energy shortage faced by business and society as a whole, sources said.
Oil supply to PSO cut as debt accumulates
