Share this story!            

PSO halts supplies to HUBCO on non-payment of dues

By Zafar Bhutta

ISLAMABAD: The state run oil marketing firm, Pakistan State Oil (PSO) has stopped the fuel supply to Hub Power Company (Hubco) over non-payment issue as all the oil-marketing companies in Pakistan are facing liquidity problems.

A source in the petroleum ministry told Daily Times on Wednesday, “Pakistan State Oil (PSO) has stopped the fuel supply to Hubco for non-payment of dues. HUBCO has to pay dues of over Rs 2 billion to PSO.”

After this decision of the PSO, Hubco would have to face the issue of maintaining oil stock. “PSO would resume supply of oil to Hubco only after obtaining letter of comfort from the ministry of Water and Power,” the source said.

The officials said circular debt was continually rising as PSO had to receive big dues from different entities including PIA and Railways.

They said state run PSO is facing difficult situation to carry out its operations in the country as it has to receive differential claims worth billion rupees from the government on one side to facilitate the consumers and on the other side, two main entities PIA and PEPCO are to pay billion rupees dues to PSO.

A senior official in Pakistan Electric Power Company (PEPCO) said, “Hubco had the oil stock for 28 days to run its plants for the power generation, however, it is bound to maintain stock for 30 days and disruption in fuel supply from PSO could disturb the oil stock of HUBCO, making it difficult to run plants.

He said that PEPCO was receiving 900MW power from HUBCO and its one plant was closed due to maintenance problems. He said that its one plant is closed for more than five months. He said that this stoppage could disturb the operations of HUBCO on long-term level. It may be mentioned that PEPCO is getting electricity from HUBCO over the highest rates of over Rs 10 per unit.

He said that PEPCO was also facing problems, as it was to recover Rs 40 billion from Karachi Electric Supply Company and Rs 70 billion from Federally Administered Tribal Areas.

Home | Business

Share this story!