Refineries, including the Attock Oil Refinery (ARL), have stopped/reduced the supply of refined fuel to Pakistan State Oil (PSO) after its dues exceeded Rs 82 billion, it is learnt. "Currently, we are just supplying jet fuel oil to PSO on cash payments after our outstanding dues against PSO crossed Rs 28 billion," an ARL official said.
He said that the company management had, in principle, decided not to extend fuel on credit to PSO because of the huge outstanding dues. When the official was asked about the refinery's operations, he said that currently, the refinery was not operating at full capacity because of the circular debt issue. But different refined oil products were being supplied in the open market, he said.
Currently, PSO has to pay Rs 82.3 billion back to local refineries, of which it owes Rs 26.65 billion to Pak Arab Refinery Limited (Parco), Rs 14.45 billion to Pakistan Refinery Limited (PRL), Rs 9.36 billion to National Refinery Limited (NRL), Rs 28.11 billion to ARL, Rs 2.6 billion to Bosicor and Rs 1.15 billion to others.
The national fuel supply company has to payback Rs 96.45 to Kuwait Petroleum Company Limited and other international fuel suppliers on account of Letter of Credit (LC) payments. PSO's total payables to local and international fuel suppliers stand at Rs 179 billions, of which Rs 77.7 billion is overdue.