The cash-strapped Pakistan State Oil (PSO) received Rs 20 billion on Tuesday from Water and Power Development Authority (Wapda) and Kot Adu Power Company Limited (Kapco) on account of fuel supply. Spokesman of PSO confirmed that Wapda had provided Rs 15 billion whereas amount of Rs 5 billion was disbursed by Kapco.
"The disbursed amount of Rs 20 billion is part of commitment made by Finance Ministry to release Rs 30 billion to PSO to ease its financial woes," sources said adding that an amount of Rs 30 billion will also be released to PSO in coming quarter of ongoing financial year 2010-11.
As on March 8, 2011, PSO receivables against different clients, mainly power sector, jumped to Rs 169.18 billion thereby negatively affecting its ability to continue operations of fuel supply smoothly. PSO is to make payment of Rs 55.86 billion to Kuwait Petroleum Corporation (KPC) and other international fuel suppliers for oil imports.
PSO has awarded a tender of one million tons of oil planned for March and April after Finance Ministry committed to release Rs 30 billion. The tender was awarded for 14 cargoes of 65,000 tons of high-sulphur fuel oil and another six parcels of 60,000 tons of low-sulphur fuel oil (LSFO). PSO had also awarded a tender for three jet fuel cargoes of 16,500 tons for March-April delivery.
The outstanding balance of PSO stood at Rs 150 billion during the first week of February that increased sharply as none of PSO's major clients paid their dues. Petroleum Ministry officials see recent release of Rs 20 billion as a means to save PSO from default for the time being but uninterrupted credit sales will keep on swelling.
On February 17, PSO had suspended supply of furnace oil to power-producing entities due to non-payment of dues. Oil refineries had also reduced the credit supply to PSO by 58 percent due to non-payment. In December 2009, PSO's refinery receipts were 173,000 metric tons that dropped to only 73,100 tons due to circular debt issue.
Comments
Comments are closed.