ISLAMABAD – The Pakistan State Oil (PSO) requires another major injection of Rs50 to Rs60 billion from the national exchequer to normalise its operations, though the Ministry of Finance has injected Rs27 billion into the PSO coffers this month on account of furnace oil, official sources.
It has defaulted on five L/Cs after which the banks refused to open its letters of credit, resulting into a fuel crisis. However, the Ministry of Petroleum argues that petrol consumption increased after depreciation on the international market and closure of CNG stations. The PNSC ships importing crude oil also got delayed breaking the supply chain during the last eight days. After hearing all these arguments, sources say the crisis can only be resolved if the government provides additional rescue package to PSO on an immediate basis in order to normalise its operation in days ahead or this situation might prolong.
The power generation companies (Gencos) have given orders for the purchase of furnace oil directly through spot purchasing in order to avoid a full-fledged electricity crisis as the country is already facing a petrol shortage in its different areas.
They added the government had provided Rs2,500 billion for power sector during the last seven years, including the fiscal year 2012-13 and 2013-14. This massive money included the tariff differential subsidy and over and above the requirement of power sector that emerged as a liability of power sector owing to a variety of reasons.The over and above liabilities have been cleared by the Finance Division during the last seven years and again they have to come forward to resolve this issue amicably.
