PSO warns of jet fuel shortage: helicopters' rescue work, foreign flights may be affected

The Pakistan State Oil (PSO), which has accumulated receivables amounting to Rs 139.3 billion, has warned the government that rescue operations on helicopters in flood hit areas and foreign flights bringing relief goods may be affected due to shortage of jet fuel.
Sources in Petroleum Ministry told Business Recorder that oil refineries have asked PSO to pay the amount under circular debt first and then get fuel supplies despite the fact that the refineries have withheld billions of rupees of Oil and Gas Development Company Limited (OGDC) and the government on account of Petroleum Levy (PL).
In its letter sent to Petroleum Ministry, PSO said that National Refinery (NRL) and Byco have stopped fuel supply despite adequate fuel stocks. Attock Refinery (ARL) was supplying petrol and diesel to PSO but had reduced supply of jet fuel. "ARL was supplying more jet fuel to Shell Company in contrast to PSO," sources said, adding that helicopters engaged in flood hit areas and foreign flights coming with relief goods may be forced to suspend operations if the current imbroglio continues. PSO supplies jet fuel for flights at major airports in the country. "We may not be able to provide jet fuel to flights if oil refineries continue present practice of cutting fuel supplies," sources said.
They said that PSO was to pay Rs 4.6 billion to Byco which had withheld dues of OGDC and government taxes amounting to Rs 5.5 billion. They regretted that oil refineries were not co-operating with PSO and exploiting the flood situation. PSO receivables against different clients is: Wapda at Rs 46.9 billion, Hubco at Rs 54.7 billion, Kapco at Rs 25.49 billion, PIA at Rs 491 million, OGDC at Rs 418 million, KESC at Rs 1.6 billion, financial charges from PIA at Rs 960 million, price differential claims (PDC) on high speed diesel (HSD) at Rs 1.38 billion and PDC on imported PMG at Rs 3.37 billion. PSO is to pay Rs 112.96 billion dues to local as well as international fuel suppliers: Rs 36.26 billion to Parco, Rs 13.358 billion to PRL, Rs 9.509 billion to NRL, Rs 23.38 billion to ARL, Rs 4.69 billion to Bosicor and Rs 24.98 billion on L/Cs payments and other international fuel suppliers.