POL items’ supply chain: PSO urges MoF, MoE to arrange Rs50bn before 31st

ISLAMABAD: Pakistan State Oil (PSO) has sent an SOS to Ministry of Energy and Ministry of Finance to arrange Rs 50 billion before January 31, 2022 to ensure uninterrupted supply chain of petroleum products.

The letter written by Managing Director/ CEO PSO, Syed Muhammad Taha on January 11, 2022,states that the company’s total receivables amount to Rs 426.7 billion as on January 10, 2022 which is almost the same level as on December 28, 2021.

According to the letter, total due amount from Genco-1 was Rs 285 million, Genco-III, Rs 137.999 billion, CPPA-G, Rs 2.409 billion, SNGPL, Rs 205.475 billion, SNGPL exchange loss, Rs 6.754 billion, Hubco, Rs 29.882 billion, exchange rate differential on FE 25 loan, Rs 6.800 billion, PIA, Rs 22.213 billion, Kapco, Rs 5.125 billion and price differential claims from GoP, Rs 9.774 billion.

Managing Director PSO maintained that during the month of January 2022(so far), the company has supplied LNG worth Rs 14.671 billion to SNGPL against payment of Rs 14.643 billion. During January 11-31, PSO is required to make payment of around Rs 35 billion and Rs 90 billion to local refineries and international suppliers including Qatar Gas respectively.

“Keeping in view the high level of receivables and future payment obligations of PSO, you are requested to use your good offices to arrange payment of Rs 50 billion before January 31, 2022 so that uninterrupted supply chain of petroleum products can be ensured,” said MD PSO in his letter to the Secretaries.

Copyright Business Recorder, 2022