07-16-2009, 09:52 PM
<b>PSO's SOS to Petroleum Ministry worst-ever fuel, power crisis feared after July 22 </b>
ISLAMABAD (July 16 2009) The country may face severe fuel and power crisis after July 22 as Pakistan State Oil (PSO) has shown its inability to keep oil supply intact if the government does not immediately release Rs 30 billion to clear the outstanding dues of oil refineries and international suppliers.
Sources in Petroleum Ministry revealed to the Business Recorder that they received SOS letter from PSO Managing Director on Wednesday, a copy of which has been sent to the Finance Ministry, requesting Advisor to Prime Minister on Petroleum and Natural Resources Dr Asim Hussain to intervene for immediate release of Rs 30 billion.
The PSO Managing Director, in his letter, said that PSO's total outstanding against different clients had accumulated to Rs 79 billion and the power sector was major defaulter.
The PSO was to pay Rs 21 billion to international fuel suppliers within this fortnight, the sources said, adding that if the PSO failed in clearing the backlog, its credibility would be affected resulting in problems for import of oil in future.
The sources quoted the PSO Managing Director as saying in his SOS letter that due to failure of the PSO's clients, especially power sector, to pay in time, it was depending on the borrowing from the banks to run its operations, which had also piled up to Rs 20 billion.
The SOS letter further said that the PSO's letter of credits (LCs) might also default if the government did not release Rs 30 billion to pay to the international fuel suppliers and oil refineries without wasting more time.
The sources said that the PSO was defaulter of oil refineries and the amount had accumulated to Rs 52 billion. "Non-payment of dues by the PSO to oil refineries is also affecting the operation of oil refineries. The PSO is the major fuel supplier in the country that captures over 70 percent market share and it is making uninterrupted fuel supply despite constantly rising payments to different clients," said the sources.
The sources feared that country was already undergoing power shortage and if the PSO supply was interrupted due to its poor financial health, the whole country would be facing worst ever power crisis that would also badly hit the manufacturing sector.
<i><b>Copyright Business Recorder, 2009</b></i>
http//www.brecorder.com/index.php?id=936458&currPageNo=1&query=&search=&term=&supDate=
ISLAMABAD (July 16 2009) The country may face severe fuel and power crisis after July 22 as Pakistan State Oil (PSO) has shown its inability to keep oil supply intact if the government does not immediately release Rs 30 billion to clear the outstanding dues of oil refineries and international suppliers.
Sources in Petroleum Ministry revealed to the Business Recorder that they received SOS letter from PSO Managing Director on Wednesday, a copy of which has been sent to the Finance Ministry, requesting Advisor to Prime Minister on Petroleum and Natural Resources Dr Asim Hussain to intervene for immediate release of Rs 30 billion.
The PSO Managing Director, in his letter, said that PSO's total outstanding against different clients had accumulated to Rs 79 billion and the power sector was major defaulter.
The PSO was to pay Rs 21 billion to international fuel suppliers within this fortnight, the sources said, adding that if the PSO failed in clearing the backlog, its credibility would be affected resulting in problems for import of oil in future.
The sources quoted the PSO Managing Director as saying in his SOS letter that due to failure of the PSO's clients, especially power sector, to pay in time, it was depending on the borrowing from the banks to run its operations, which had also piled up to Rs 20 billion.
The SOS letter further said that the PSO's letter of credits (LCs) might also default if the government did not release Rs 30 billion to pay to the international fuel suppliers and oil refineries without wasting more time.
The sources said that the PSO was defaulter of oil refineries and the amount had accumulated to Rs 52 billion. "Non-payment of dues by the PSO to oil refineries is also affecting the operation of oil refineries. The PSO is the major fuel supplier in the country that captures over 70 percent market share and it is making uninterrupted fuel supply despite constantly rising payments to different clients," said the sources.
The sources feared that country was already undergoing power shortage and if the PSO supply was interrupted due to its poor financial health, the whole country would be facing worst ever power crisis that would also badly hit the manufacturing sector.
<i><b>Copyright Business Recorder, 2009</b></i>
http//www.brecorder.com/index.php?id=936458&currPageNo=1&query=&search=&term=&supDate=
