PSO stops fuel supply to power companies

ISLAMABAD - Another crun-ching loadshedding is on the cards, as Pakistan State Oil (PSO) Thursday suspended the fuel supplies to power sector on credit due to non-payment of dues, which might leads to long hours power break down. However, later the fuel supply to Pakistan Electric Power Company (Pepco) was restored and supply to M/s Hubco and Kapco remained suspended till the filing of this report. The cash-strapped Pakistan State Oil (PSO had warned Hubco, Kapco and Pepco to suspend fuel supplies on credit if their dues were not cleared. Pakistan State Oil has decided to discontinue credit supplies of furnace oil to WAPDA, HUBCO and KAPCO with effect from 17th February 2011, 13:00 hours on account of non-payment of dues from these entities. Mariam Shah Spokesperson of PSO said the decision to cut off supplies which amount to approximately 23,000MT on a daily basis has come after a series of deliberations by the top management. PSO is on the verge of impending default and had been supplying uninterrupted fuel to the power sector to responsibly meet the energy requirements of the nation. However, given that the total receivables of the company have increased to an astounding Rs 158.65 billion, the management is left with no choice but to truncate supplies to the energy sector. Around Rs 129 billion are payables where 43 billions are of international fuel suppliers and 85 billion rupees are of local refineries, she said while adding that Prime Minister Syed Yousuf Raza Gilani is requested to immediately resolve the soaring issue of nations interest. It is to note PSO has exhausted its resources for financing future product supplies.

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