Pakistan Electric Power Company (Pepco) has released Rs 4 billion to Pakistan State Oil (PSO) on account of fuel supply, Business Recorder has learnt. "Pepco is expected to release Rs 2 billion more on Monday to PSO on account of fuel supply," sources said adding that it is a meager amount being released to PSO. The PSO dues against its clients stood at Rs 110 billion on Friday, putting the organisation in difficult situation to continue smooth fuel supply across the country.
Prime Minister Syed Yousuf Raza Gilani had decided in a meeting held on circular debt to arrange Rs 45 billion from different sources for PSO. "It was decided in a meeting to release Rs 25 billion to PSO in first tranche to ease its financial woes but no major amount had been provided so far," sources said.
"The country may face worst power and oil crisis in coming days if PSO fails to receive dues from its clients to mature its L/Cs for oil import," sources said, adding that the demand of furnace oil and diesel would rise in the coming months due to upcoming Kharif season.
PSO is also to make payment of billion of rupees to oil refineries on account of fuel supply, which reduced production. Refineries claim that they are also facing loss under the existing pricing mechanism coupled with circular debt problems.