PSO seeks Rs65bn from Power Div

ISLAMABAD: Pakistan State Oil (PSO) has sought Rs 65 billion from Power Division to release its choked credit line and ensure furnace oil supplies to the power sector, well-informed sources told Business Recorder.

This demand was made by PSO at a recent meeting with the officials of Ministry of Energy (Power Division).

PSO, sources said, has claimed that it has supplied fuel oil to the power sector of the value of around Rs.58.5 billion from May-July 2018, in line with the directives of MoE (Power Division). However, despite assurances, PSO did not receive corresponding payments for the supplies made and was allocated only Rs.17.8 billion from the regular Pakistan Electric Power Company (PEPCO) allocations during this time, resulting in around Rs.40.6 billion deficit, adding up to PSO ‘s already burgeoning debt against power sector customers.

Additionally, PSO has Rs.14.7 billion overdue against LNG supplies to SNGPL as of August 13, 2018, adding up to around Rs.55 billion total against the power sector/SNGPL.

Published in Business Recorder, 22nd August, 2018