According to well-informed sources, Pakistan State Oil (PSO) is currently dealing with oil supply management issues. Private entities and banks prefer to limit their risk, and international oil merchants demand cash and higher premiums.
The cash-strapped fuel provider stated in a letter to the federal government that its total receivables were Rs. 519.485 billion on April 14 and counting, as power companies, gas utilities, and other public sector enterprises, as well as the government, withheld large sums on various counts.
Under the current circumstances, PSO is having difficulty arranging fuel delivery because demand for jet fuel and high-speed diesel (HSD) has increased globally, and money managers prefer cash payments and higher surcharges on delayed payments.
According to sources, the state-owned PSO has mandatory payables totaling more than Rs. 265 billion, including Rs. 223 billion to long-term overseas natural gas suppliers, petroleum products, and matured letters of credit (LCs).
Local petroleum providers are owed a total of Rs. 42.5 billion, which includes Rs. 23.4 billion to Pak-Arab Refinery, Rs. 8.73 billion to Pakistan Refinery, Rs. 6.73 billion to Attock Refinery, Rs. 2 billion to National Refinery, and Rs. 1.6 billion to ENAR Petrotech.
Sui Northern Pipelines Limited, on the other hand, owes the most money (Rs. 272 billion), while Sui Southern Gas Company Limited owes Rs. 6.8 billion. As a result, the total amount owed to PSO for liquefied natural gas by the two gas utilities was Rs. 279 billion.
The total amount owed to power companies was Rs. 167.4 billion, with Rs. One hundred forty-one billion owed to state-owned entities, Rs. 21 billion owed to Hubco, and Rs. 5.2 billion owed to Kapco. Another Rs. 73 billion is owed to the government on various accounts, including Rs. 23 billion to PIA, Rs. 40 billion in government claims, and Rs. 10.5 billion in exchange rate adjustments.
According to market sources, PSO requires at least Rs. One hundred billion to keep the fuel market afloat. The government would have to pay at least Rs. Thirty-five billion within a few days to make up for the price disparity it has already incurred on its own from April 1 to 15.
Petrol supplies in Punjab are expected to last less than nine days, with ten days in Khyber Pakhtunkhwa and Balochistan, 46 days in Sindh, and seven days in Gilgit.
The premium for HSD supply has recently ranged between $8 and $13 per tonne, up from less than $2.5 a few months ago.
Furthermore, due to the lack of significant LNG supply and dam water storage, total furnace oil inventories for power generation are no more than 125,000 tonnes, or less than ten days, due to peak fuel demand for power generation.