The state-run Pakistan State Oil (PSO) is fraught with managing oil supply as private firms and banks attempt to limit their exposure and impulsive international oil markets prefer cash and higher premium.
In a report sent to the federal government, the cash-strapped leading fuel supplier reported that its total receivables stood at Rs519.485bn on April 14. Power companies, gas utilities and other public sector entities have held back large amounts that have left the company’s financials in shambles.
As a result, PSO has a build-up of its essential payables of over than Rs265bn, which includes Rs223bn payable to foreign long suppliers of gas, petroleum products and matured letters of credit.
A total of Rs42.5bn is payable to local fuel suppliers. Rs23.4bn is payable to Pak-Arab Refinery, Rs8.73bn to Pakistan Refinery and Rs6.73bn to Attock Refinery. The National Refinery is due to be paid Rs2bn and Rs1.6bn is payable to ENAR Petrotech.
According to local media reports, the national fuel supply giant needed nearly Rs100bn on an urgent basis to keep the fuel market liquid. However, the government would be required to make an immediate payment of at least Rs35bn within days against a price differential it has been bearing on its own for April 1-15.
