The National Refinery Limited (NRL) has decided to stop supplying fuel to Pakistan State Oil (PSO) after the state-owned oil marketing company stopped paying the refinery.
PSO has been in a severe financial crisis as a result of a lack of payments from various sectors due to the supply of petroleum products. It currently owes NRL Rs. 3.469 billion. NRL has decided to halt the supply to PSO after the stoppage of payment and intimated the OMC in writing, according to a report by a national daily.
Pertinently, PSO halted payments to refineries a few days ago. These refineries supply diesel, gasoline, aviation fuel, furnace oil, and other petroleum products to the state-owned company.
According to the company’s receivables, Sui Northern Gas Pipelines Limited (SNGPL) is the biggest defaulter of PSO so far. As of March 8, 2023, it owed the state-owned OMC Rs. 492.102 billion. In this regard, the Economic Coordination Committee of the cabinet on Tuesday allowed a sovereign guarantee in favor of SNGPL for commercial borrowing of Rs. 50 billion on an immediate basis for the liquidity requirement of PSO.
The power sector continues to plague the state-owned oil marketing company, which is owed Rs. 178 billion, followed by Pakistan International Airlines (PIA) and the government of Pakistan, both of which owe PSO Rs. 92.5 billion.
The most important payment, Rs. 124.666 billion in late payment surcharge (LPS), is also included in the total receivables, which have risen to Rs. 762.653 billion.