Fuel Reserves Down
The strategic fuel reserves have alarmingly dwindled to just seven days for thermal powerhouses, and the government-owned oil marketing company, the Pakistan State Oil (PSO), is virtually penniless now as its outstanding dues, which mainly power sector owes to it, have surged to over Rs100 billion.
“The furnace oil reserves have fast depleted to just seven days from 25 days. If this situation continues, the whole country would plunge into darkness after one week,” a senior official at the Petroleum and Natural Resources Ministry told The News.
“The PSO has written three letters in latest correspondence, each to the Finance Ministry, the Petroleum and Natural Resources Ministry and the Water and Power Ministry intimating them about the appalling oil reserves stocks and its fiscal constraints, which are impeding the import of further fuel in the country,” the official added.
It is pertinent to mention that the PSO has scrapped the import of fuel oil tender because of cash constraints. The public sector oil marketing company in a letter to the Pepco written on February 9 says the entire oil import plan has been disturbed because of the unavailability of the required liquidity.
The letter says if the Pepco does not arrange substantial amount (at least Rs 25 billion) to clear the dues, the PSO will be forced to scrap the tenders. Refineries, which are running under the production capacity by 45 to 60 per cent in the wake of liquidity constraints, have also suspended the supply of products to the PSO as their outstanding dues have jacked up to the whopping figure of Rs 62 billion.
Via: The News
