Following Pakistan State Oil’s (PSO) failure to clear its liabilities of Rs 188 billion, national and international oil refineries have stopped supplying fuel to the state oil agency. Sources said PSO’s liabilities towards national and international oil refineries had crossed Rs 188 billion and the cash-strapped oil agency had failed to clear its dues. They said PSO had to pay Rs 97 billion to local refineries and Rs 91 billion to international refineries, who had stopped fuel supply that could lead to the suspension of fuel supply cycle across the country. The sources further said more than 85 percent of the oil was imported and in case of suspension in the fuel supply, business activities in the country would be severely affected. They said the demand of oil in the country was 21 million tons currently and local production of crude oil was just 15 percent of the supply. Non-payment of dues from power sector has resulted into financial constraints for PSO and situation has become alarming. The sources added that the power sector was the main defaulter of the PSO.
