PSO paid Rs 15 billion to clear LC payments

The Pakistan Electric Power Company (Private) Limited (Pepco) has released Rs 15 billion to Pakistan State Oil to clear letter of credit payments of international fuel suppliers, it is learnt. Petroleum Ministry sources told Business Recorder here on Tuesday that the Ministry of Finance the other day released Rs 15 billion to Pepco on account of tariff differential, which the Pepco paid to PSO for clearing Letter of Credit (LC) payments of international fuel suppliers.
"The LC payment was due on Monday (November 4) and today the PSO paid the amount to international fuel supplier Kuwait Petroleum Company. We have requested the Ministry of Finance for the release of Rs 50 billion to the PSO by November 15, so that the company can pay LC payments," the official stated.
Moreover, the officials also said that a delegation of International Monetary Fund had shown grave concern over the low gas prices in the country and had urged the government to bring gas prices at par with international gas prices for all the categories of gas consumers. At present, total receivables of the PSO from power and other sectors stand at Rs 124.16 billion of which Rs 76 billion from Water and Power Development Authority, Rs 18 billion from the Hub Power Company, Rs 6.14 billion from Pakistan International Airline, Rs 484 million from Oil and Gas Development Company Limited, Rs 11.11 billion from Karachi Electric Supply Company, Rs 287 million from National Logistic Cell, Rs 1.14 billion from Independent Power Plants (IPPs) and Rs 1.12 billion from Pakistan Railways.
The company is to receive Rs 1.14 billion on account of audited price differential claim of High Speed Diesel, Rs 3.4 billion on account of price differential on Low Sulphur Fuel Oil and High Sulphur Fuel Oil, Rs 1.36 billion on account of price differential on imported PMG and Rs 3.91 billion price differential under GLMP.
The PSO's total payables to local refineries stand at Rs 22.7 billion including Rs 8.14 billion to Pak-Arab Refinery Limited, Rs 1.6 billion to Pakistan Refinery Limited, Rs 8.7 billion to Attock Oil Refinery Limited and Rs 3.48 billion to others. The PSO has to pay a total of Rs 122 billion to Kuwait Petroleum Company and other international fuel supplying companies within coming months, of which Rs 50 billion is due by November 15, 2013.