News
Wednesday, June 16, 2010
PSO refuses oil supply to KESC on discount rateKARACHI: To avoid further burden of the circular debt, the Pakistan State Oil (PSO) has shown its inability to the federal government to supply furnace oil on natural gas tariff (discount rate) to the Karachi Electric Supply Company (KESC), it was reliably learnt. “Considering the high receivables of the PSO, the company is not in a position to continue supplying subsidised furnace oil to KESC. The supplies would only be made under the Fuel Supply Agreement ie 33,000 metric tonnes per month,” the sources said. PSO’s spokesman told Daily Times that the company did not refuse supply of furnace oil to the KESC, but the matter was discussed with the federal government. The PSO’s total payable to KESC stood at Rs 5.8 billion while the price differential claims on KESC were around Rs 4.1 billion, according to the sources. “There are strong chances that the PSO may discontinue supply of subsidised furnace oil to KESC under the NTDC programme, whereby the PSO was directed to compensate for WAPDA not being able to supply electricity to the KESC from the national grid,” the spokesman said. masroor afzal pasha
Courtesy www.dailytimes.com.pk