Power companies increase PSO’s financial woes to Rs. 306 billion

Pakistan State Oil has been under tremendous financial woes as outstanding amount has reached Rs 306 billion where mostly contributed by the power companies, purchasing furnace oil but not paying on time.

According to the details available from the oil giant currently the receivables have reached to Rs. 306 billion of this nearly Rs. 276 billion has to be paid by the power companies including Hub Power, Kot Addu Power and Gencos.

Moreover, the PSO has to receive nearly Rs. 25 billion from other state run companies including Pakistan International Airlines which has to pay in excess of Rs 15 billion.

One of the analysts from the leading brokerage house said PSO has been double edge blade- the oil companies buying furnace oil and not clearing their dues while now the government has asked the companies to stop their power plants which in turn has reduced the sale of furnace oil.

PSO recently sent letters to Ministry of Energy that ship load of eight vessels have been on their way while couple of them entered the Pakistani waters and sudden decision to add financial woes of the company.

The company has to face heavy demurrages amounting to 250,000 dollars per day if the vessels failed to offload the cargo in prescribed period. Moreover, it would choke the supply chain and refineries likely to close down as they have not enough space to store the products.

The government should react on war footing basis otherwise the country might face oil storage and supply problems, said an official of the company.