The oil refineries have stopped supply of refined fuel to Pakistan State Oil (PSO) due to non-payment of over Rs 94. 86 billion, it is learnt. A senior official of national fuel supplying company told Business Recorder here on Tuesday that the local refineries have stopped supplying of refined petroleum, oil and lubricant (POL) products to PSO.
When official was asked why supply of the refined POL products to Pakistan's leading oil marketing company (OMC) was suspended, he said that the ever increasing liabilities against PSO forced the management to take the decision. He added that instead of supplying fuel to PSO we are supplying it in the open market to other OMCs including Shell, Caltex, Parco and others. When this correspondent contacted officials of leading refineries ie Attock Refinery Limited (ARL) and Pak-Arab Refinery (PARCO) they also confirmed that both the refineries have stopped POL products supply to PSO.
"We are at present just supplying jet fuel oil to PSO only on cash payments, as our outstanding dues against PSO have crossed Rs 31.276 billion," an ARL official said. He said that owing to the outstanding dues against PSO, the company management has decided in principle not to extend fuel on credit to PSO. When the official was asked about the operations of the refinery, he said that currently the refinery was not operating at full capacity because of circular debt issue, but different refined oil products are being supplied in the open market.
At present, PSO has to payback Rs 94.86 billion of local refineries out of which Rs 32.62 billion to Pak Arab Refinery Limited (PARCO), Rs 17.12 billion to Pakistan Refinery Limited (PRL), Rs 10.34 billion to National Refinery Limited (NRL), Rs 31.276 billion to ARL, Rs 2.6 billion to Bosicor and Rs 923 million to others. The national fuel supplying company has to payback Rs 99.317 billion 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 194.18 billion out of which Rs 84.82 billion is overdue.