PSO starts cheap oil supply to KESC
November 18, 2010 by Trend PK
Filed under World News
Staff Report
KARACHI: Pakistan State Oil (PSO) has started to supply oil on cheaper rates to the Karachi Electric Supply Corporation (KESC) on Thursday.
According to sources, after intervention of Sindh Governor, Dr. Ishrat ul Ebad Khan, PSO has started a daily oil supply of 2500 metric tons. PSO will charge this oil supply equivalent to the gas price.
The Financial Coordination Committee will decide, in next meeting, the payment mode of this cheaper oil supply, as KESC’s outstanding dues of PSO have already reached above Rs. 70 billion. Trend Pk
KESC spares industrial units from power outages
November 3, 2010 by Trend PK
Filed under World News
Staff Report
KARACHI: The Karachi Electric Supply Company (KESC) on Wednesday exempted industrial units of the metropolis from electricity load shedding.
A KESC spokesman said that industrial load shedding has been completely ended.
The spokesman, however, said that three to four hours of power cuts would continue in residential areas.
He said that gas supply continues to remain at 70 MMCFD.
The prolonged and unscheduled power cuts ended after Pakistan State Oil (PSO) increased oil supply to the KESC.
A PSO spokesman announced that the KESC would get daily oil supply of 2, 500 furnace oil at the prices of gas.
The spokesman said that supply of furnace oil on subsidized rates was started in line with the government’s order. Trend Pk
KESC spares industrial areas from power outages
November 3, 2010 by Trend PK
Filed under World News
Staff Report
KARACHI: The Karachi Electric Supply Company (KESC) on Wednesday exempted industrial unit of the metropolis from electricity load shedding.
A KESC spokesman said that industrial load shedding has been completely ended.
The spokesman, however, said that three to four hours of power cuts would continue in residential areas.
He said that gas supply continues to remain at 70 MMCFD.
The prolonged and unscheduled power cuts ended after Pakistan State Oil (PSO) increased oil supply to the KESC.
A PSO spokesman announced that the KESC would get daily oil supply of 2, 500 furnace oil at the prices of gas.
The spokesman said that supply of furnace oil on subsidized rates was started in line with the government’s order. Trend Pk
Pakistan Railways to increase fares
November 1, 2010 by Trend PK
Filed under World News
Staff Report
LAHORE/ISLAMABAD: Pakistan Railways has asked the federal government to provide the subsidy on the fares or to allow the department as it could raise traveling charges.
Sources in the Pakistan Railways informed that the department has to pay Rs 50 million to Pakistan State Oil and with the increase in petroleum products, the debt burden would be huge.
The Pakistan Railways asked the government to announce subsidy or it will announce raise traveling fares. Trend Pk
Receivables exceed 152 billion rupees: PSO
Pakistan State Oil has said that PSOs receivables have exceeded 152 billion rupees out of which 80 percent is immediately payable by the borrowers after the credit limit has expired, Dunya News reported on Thursday.
According to the statistics provided by the spokesman of PSO, receivables on the part of WAPDA are 53 billion in volume out of which 38 billion rupees have exceeded their credit limit. Similarly HUBCO has to give 61 billion rupees to PSO whereas KEPCO has to give 25 billion rupees immediately. Due to these deferred payments to PSO, severe difficulties are being faced for the payments of oil imports and payments to the oil refineries.
Gilani rules out technocrats rule in Pakistan
Prime Minister Yousaf Raza Gilani said that technocrats system has been failed in Bangladesh, and technocrats would not be allowed to enjoy two seats on single ticket. He said that technocrats should contest polls, if wanted to come to politics.
The PM informed the National Assembly on Wednesday that the government seriously tackled the petroleum shortage. Adding to Minister for Information, in reply to a Calling Attention Notice, the Prime Minister said, There have been shortage but the government took serious note of it. I myself contacted the Petroleum Minister and asked him to overcome the shortage within two days, he added.
The Prime Minister said shortage was across the Punjab province and not only in the Southern Punjab as stated by the members. But, this shortage was due to damage caused to roads by devastating flood in Sindh province. However, he said, there was no shortage at Pakistan State Oil but at other refineries.
Ogra issues notice to oil companies over profiteering
Oil & Gas Regulatory Authority (OGRA) on Tuesday took notice of petrol shortage in the country and issued show cause notices to oil marketing companies and petrol pumps.
Ogra said that during their visit to different areas of Punjab, monitoring teams of enforcement department got to know that many oil marketing companies and filling station were involved in black marketing and were selling the commodity on inflated rates.
Ogra said all the four chief secretaries have been asked to launch action against all the culprits in this regard. According the Ogras Director Enforcement Shahid Nauman, oil marketing companies have been sought to account for the recent petrol scarcity and in absence of satisfactory response, the licenses of these oil companies may be cancelled. These show-cause notice have been issued to Pakistan State Oil (PSO), Shell Pakistan Limited, Chevron, Caltex Oil (Pakistan) Limited, Attock Petroleum Limited, Total Parco Pakistan Limited (TPPL), Admore Gas (Pvt) Ltd (AGPL), Oscar Oil Services Limited, Byco Petroleum Pakistan (BPPL), Hascol Petroleum Limited, Bakri Oil Trading Company and Overseas Oil Trading Company Limited.
Commuters in trouble as petrol shortage worsens in Punjab
Commuters across Punjab are confronted with massive transportation problems due to a further increase in the shortage of petrol in the province, as fuel remained available at only five to 10 percent of filling stations due to supply problems.
Long queues of commuters were seen at filling stations in Lahore, Multan, Dera Ghazi Khan and other major cities of the province, where limited supply of fuel to citizens increased for the worse.
Since Compressed Natural Gas (CNG) was available in the major cities, the shortage of petrol mainly irked motorcyclists and the car owners who were having single fuel consumption facilities in their vehicles.
According to details, PARCO, the largest refinery in the country, is unable to supply petrol due to damages suffered in the recent floods. Secondly, petrol is mainly coming from Karachi and due to damages to roads, the supply system has been slowed downed and thirdly, most drivers of oil tankers have not come back from Eid holidays. Delay in outstanding payments by the government to Pakistan State Oil was another reason for the shortage.
PSO ups furnace oil price
KARACHI: Pakistan State Oil (PSO) today raised the price of furnace oil by Rs1700 per tonne, Geo News reported Saturday.
The PSO officials said the price of furnace oil was augmented by Rs1700 to reach at Rs48,033 per tonne.
The price of furnace oil produced by Parco Refinery also surged by Rs1701 to Rs50,902 per tonne.
According to officials, National Refinery and Pakistan Refinery elevated the fuel price by Rs1886, mounting the price to Rs48,111/ tonne.
The officials said new prices would be in effect from August 1st, remarking the recent hike was made in tandem with the price rise in international markets.
PSO says will cut fuel to WAPDA, IPPs on dues
KARACHI: Pakistan State Oil (PSO) has threatened to stop supplying fuel to public and private power companies which fail to clear their dues by the end of the month, a company official said on Tuesday.
“PSO has sent ultimatums to Water and Power Development Authority, Hub Power Company and Kot Addu Power Company,” the official said requesting anonymity. “We are supplying 28,000 barrels of oil to these companies daily, but they have not paid a penny in July.”
WAPDA, HUBCO and KAPCO owe Rs.45 billion, Rs.55 billion and Rs.28billion to PSO respectively. Total receivables of the state-run fuel supplier now stand at Rs.139 billion.
When contacted, PSO spokesperson Mariam Shah said that the company can no longer borrow from banks to run daily operations as it has almost reached the limit of Rs.40 billion.
“The company already absorbed Rs.8.5 billion in interest cost by the end of May. Now we don’t have money to open L/Cs for the import of fuel oil.”
Analysts say that the cash-flow problems could limit the company’s ability to pay dividends. PSO did not pay any dividend while announcing its half-yearly and nine-month results during the fiscal year 2009-10, they said.
The company has been paying salaries on time but failed to give bonuses in the past one year. It has lost at least two of its senior officials to another oil marketing company.
Power generation companies delay payments to PSO on the plea that electricity distribution companies are not able to clear their dues on time. This vicious cycle of inter-corporate circular debt has held the entire energy supply line hostage for over two years, officials said.
