Pakistan State Oil (PSO) has decided to stop furnace oil supply to the power sector due to non payment of Rs 37 billion debt, which may increase load shedding in the country. The power sector has to pay a debt of Rs 37 billion to the cash strived PSO for the cost of furnace oil purchased in the current month alone. In this regard PSO’s CEO and MD convened a meeting at the company’s head office on Thursday in which the grave financial crises currently being faced by the national oil giant due to non payment of furnace oil’s cost by the power sector was discussed in detail. The lack of payment has brought the nation’s largest and most profitable public company to its knees and may consequently lead to a breakdown in the oil supply chain which will result in increased blackouts and load shedding across the country. Keeping in view the situation, the management of PSO has unanimously decided to take preventive steps to avert a possible financial default by the company including the gradual curtailment of supplies on credit terms to the power sector. However, the IPP’s which pay in cash will not be affected. The meeting was told that PSO required at least Rs 51 billion to retire its LC’s debt this month. However, despite various promises made by the Water and Power Ministry, only Rs 13 billion have so far been paid-leaving a whopping deficit of Rs 37 billion for the current month only.
