PSO receivables/payables hit Rs396.5bn mark

ABDUL RASHEED AZAD

ISLAMABAD: The Pakistan State Oil’s receivables and payables rose to Rs 396.5 billion of which Rs 214.022 billion are receivables and Rs 182.5 billion payables to international and local fuel suppliers.

According to official data, the oil giant’s total payables to local refineries and international fuel suppliers have touched Rs 182.5 billion mark, while receivables from power sector and other sectors including Pakistan Railways and Pakistan International Airlines (PIA) stand at Rs 214.022 billion.

Sources in PSO said monthly the company is supplying furnace oil worth Rs. 32 billion to power sector, while the sector is unable to pay back full dues, as its monthly payback is around Rs 12 billion due to which PSO’s outstanding dues are increasing constantly.

The Hub Power Company Limited (Hubco) is the leading defaulter of PSO with Rs 101.4 billion outstanding followed by Water and Power Development Authority (Wapda) with Rs 54.6 billion and Kot Addu Power Company (Kapco) with Rs 29.27 billion. The company has to receive Rs 3.11 billion from Pakistan International Airline (PIA), Rs 416 million from Oil and Gas Development Company Limited (OGDCL), over Rs 7 billion from Karachi Electric Supply Company (KESC), Rs 524 million from National Logistic Cell (NLC) and Rs 1.4 billion from Pakistan Railways.

The company is to receive Rs 1.4 billion on account of audited price differential claim of High Speed Diesel (HSD), over Rs 3.407 billion on account of price differential on Low Sulphur Fuel Oil & High Sulphur Fuel Oil (LSFO/HSFO), Rs 1.36 billion on account of price differential on imported PMG and Rs 8.612 billion price differential under GLMP and Rs 1.419 billion on account of financial charges on PIA.

At present, PSO has to pay back Rs 90.85 billion to local refineries of which Rs 31.43 billion to Pak Arab Refinery Limited (Parco), Rs 16.22 billion to Pakistan Refinery Limited (PRL), Rs 8.9 billion to National Refinery Limited (NRL), Rs 31.4 billion to ARL, Rs 2.63 billion to Bosicor and Rs 273 million to others.

The national fuel supplying company has to payback Rs 91.6 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 182.46 billions out of which Rs 78.65 billion is overdue.

PSO officials said the circular debt has crippled the national economy and some of the local refineries have refused to provide petroleum products to the national fuel supplying company, adding that if the government did not take immediate steps for the resolution of PSO circular debt issue the company would be on the verge of default.

They added that during the first 10 months of the current fiscal year, PSO’s liabilities against power sector soared by Rs. 95 billion, resultantly the company’s total outstanding dues against power sector and other clients reached Rs 214.022 billion, which is a record.