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PSO pays dues, loans worth Rs 57 billion

KARACHI: Pakistan State Oil (PSO) has paid all its outstanding dues worth Rs 57 billion to different local refineries and banks on purchase of petroleum products particularly diesel and petrol, an official source told Daily Times.

Source informed that the government had granted Rs 62 billion as Price Differential Claims (PDC) to state-run oil marketing company a week ago. It has also paid outstanding loans of more than Rs 30 billion to the banks.

PSO was stopped supply of petroleum products by the refineries last month due to non-payment of dues. This caused an unavailability of petroleum products at retail pumps situated in many small cities of Sindh and Punjab.

Meanwhile, the supply was improving as the company has started paying its dues to refineries. On the other hand, its market share has increased to 71 percent in the current month as compare to 59 percent during May. PSO has cleared all the dues and loans at the closing of financial year, while it owes a whopping amount of Rs 25 billion from different public sector entities such as HUBCO, WAPDA and PIA.

Recently, PSO has sought approval from Economic Coordination Committee (ECC) to cutting down in the number of depots aimed at increasing operational efficiency by reducing its expenses. It has proposed reducing its oil depots from 30 to 19 situated at the far-flung or rural areas of the country.

The official told the state-run oil marketing firm would save Rs 1.6 billion per annum by implementing the proposed operational cost measures. In addition, the reduction in depots will eliminate any misuse of the existing Freight Equalisation Margins (IFEM) which will save taxpayers’ money. staff report

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