PSO curtails POL imports by 50 percent: non-payment of dues, decrease in demand

The cash strapped Pakistan State Oil (PSO) has curtailed its import of petroleum products by 50 percent for the month of September due to non-payment of outstanding by power sector companies, besides the reduction in demand of the products caused by the devastating floods.
PSO is reviewing the import plan for the month of October in view of around 40 percent reduction in demand of petroleum products due to damage to infrastructure by the recent flash floods. "PSO has not received any amount from clients on account of fuel supply for the month of September," sources said, adding that PSO has healthy stock of fuel.
Source further revealed that PSO was expecting receipts from Hubco, Kapco and Wapda in September as they had increased power tariff. "However we are expecting an amount no more than Rs 10 billion," they added. PSO has been facing shortage of Jet fuel in Peshawar and Islamabad but now the problem has been resolved by arranging supply from Karachi.
PSO receivables have swelled to Rs 140.200 billion on account of fuel supply. As on September 2, 2010, PSO receivables are as follows: Wapda at Rs 45318 million, Hubco at Rs 56,493 million, Kapco at Rs 26,410 million, PIA at Rs 429 million, OGDC at Rs 272 million and KESC at Rs 1,645 million. PSO price differential claims on imported petroleum products and KESC under gas load management plan are Rs 8,673 million.
PSO is also facing difficulties in clearing the dues of local as well as international fuel suppliers due to non-payment of dues by power sector. PSO has to pay Rs 115,463 million to suppliers on account of fuel supply. It has to pay Rs 87,704 million to local oil refineries, which includes Rs 36,269 million to Parco, Rs 1,397 million to PRL, Rs 9,369 billion to NRL, Rs 23,481 million to ARL and 4,694 million to Bosicor. PSO is also to pay Rs 27,732 million to Kuwait Petroleum Corporation (KPC) and on account of L/Cs payments for oil imports.