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PSO to Import Over 1 Million Tonnes Fuel By March 2012

  • Pakistan State Oil has floated tenders for importing high quantity of fuels for deliveries in February and March next year. However, PSO has not invited any offers for the import of jet fuel after country stopped supplies to NATO in Afghanistan.According to reports, PSO has already cancelled an earlier tender for the import of jet fuel. The state run oil marketing company has invited offers from international suppliers to provide 70,000 tons motor gasoline for February while 140,000 tonnes motor gasoline would be required for March 2012.Moreover, PSO would also be importing 455,000 tonnes of high sulphur fuel oil in February and 195,000 tonnes HSFO in the H1 of March, 2012 to fulfill demand of the country’s thermal power plants. This is in addition to 130,000 tonnes of light sulphur fuel oil to be imported February and March 2012 each.
  • Analysts said that higher dependency of thermal independent power producers on imported fuel oil would lead to further hike in the circular debt. The bids would be opened on January 3rd 2012 at the company’s head office in Karachi.It may be mentioned here that PSO supplies a total of 580,000 tonnes of furnace oil to the power sector each month. According to the break up 160,000 tonnes is supplied to Wapda and Gencos, 150,000 tonnes to Hubco, 120,000 tonnes to Kapco and 150,000 tonnes to other IPPs.
  • Meanwhile, PSO's total liabilities stand at PKR 166.886 billion as of Wednesday including PKR 89.32 billion payable against letter of credit to Kuwait Petroleum Company and other fuel suppliers. While payables to local refineries include PKR 35.432 billion to Parco, PKR 11.244 billion to Pakistan Refinery, PKR 9.046 National Refinery, PKR 18.919 billion to Attock Refinery, PKR 2.292 billion to Bosicor and PKR 633 million to other local suppliers.One of the refineries has already conveyed to the government that it would not supply petroleum products to PSO because of non payment of its outstanding amount. On the other hand, company’s receivables stood at PKR 178.918 billion including PKR 39.025 billion, PKR 79.022 billion and PKR 35.141 billion from Wapda, Hubco and Kapco respectively.Besides, PIA, OGDC, KESC, NLC and Pakistan Railways owes PKR 3.588 billion, PKR 233 million, PKR 4.552 billion, PKR 346 million and PKR 1.119 billion to PSO respectively. Moreover, PSO has also to receive PKR 8.595 billion under price differential subsidy.

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