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PSO to curtail supplies to power sector

The Pakistan State Oil (PSO) on Thursday announced gradual curtailment of supplies on credit to the power sector.

The independent power producers (IPPs), which pay in cash, will not be affected, the PSO said in a statement.

An emergency meeting was convened at the PSO House by the chief executive officer and managing director of PSO to discuss the financial situation currently being faced by the national oil giant.

This situation has arisen due to the lack of payments by the power sector for the furnace oil, which is being supplied to them on credit.

The PSO requires at least Rs51 billion to retire its letter of credit this month; however, despite various promises by the Ministry of water and power, only Rs13 billion have so far been paid, leaving a whopping deficit of Rs37 billion for the current month only.

“This lack of payment has brought the nation’s largest and most profitable public company to its knees and may consequently lead to a breakdown in the oil supply chain, which will result in increased blackouts and power outages across the country,” the statement said.

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