PSO pays Rs 14bn dues to refineries

[LRE]

PSO pays Rs 14bn dues to refineries

Staff Report

KARACHI: Pakistan State Oil (PSO) has paid Rs 14 billion outstanding dues to refineries following the payment made to PSO on the account of Price Differential Claim (PDC), Daily Times learnt.

Official sources told the payment made to refineries will further smooth the supply of petroleum products to the state-run Oil Marketing Company (OMC). It was feared that the supply from refineries would be disrupted due to prolong delay of payments.

PSO still owes Rs 50 billion outstanding dues to the refineries, sources informed.

Recently, the government has disbursed Rs 25 billions to OMCs including PSO.

During last month, PSO asked the government to provide Rs 12 billion to prevent supply chain from any shock. PSO is in serious financial crunch following the prolong non-payment of its dues by the public sector entities coupled with the government’s non-payment of PDC on the account of diesel subsidy.

PSO outstanding payable amounts had reached above Rs 85 billion that disabled it to buy products from the local suppliers and refineries.

However, the official sources expressed satisfaction over the current inventory stocks of oil products, which were declining rapidly.

As on June 2008, the company had receivables of Rs 27 billion from entities like PEPCO Hubco and PIA. Whereas, all the PDC claims which incurred during FY08 on diesel were disbursed to the company by the end of June 2008. However, total outstanding amount as of October 2008 is estimated to be around Rs 60 billion (out of which receivables from Hubco are Rs18 billion). This amount also includes PDC claims which have piled up since July 2008.

PSO recovered all PDC claims of Rs 106 billion which were incurred during FY08. Out of this the government directly disbursed Rs 64 billion whereas Rs42 billion were arranged through syndicates.


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