ISLAMABAD: The receivables of Pakistan State Oil (PSO) are said to have surged to Rs345 billion by November 13th due to the default of the power sector in payments of Rs268.5 billion.
According to PSO, receivables include Rs268.5 billion from the power sector, Rs43.9 billion from Pakistan International Airlines (PIA) and government and Rs32.6 billion from the Sui Northern Gas Pipeline Limited (SNGPL).
PSO is actively coordinating with the relevant stakeholders for the realization of timely payments to ensure smooth supply of POL products.
This development comes amidst reports last week about the increased usage of furnace oil for power generation compared to lower generation on a month-on-month basis on coal and RLNG.
Power generation in October 2018 declined 5.9% year-on-year (YoY) and 24% MoM likely due to governments allocation of cheaper gas to Punjab-based export-oriented industries.
According to Arif Habib Limited (AHL) Research, this may have led to lower demand for electricity from the grid as companies are generating power from their respective gas-fired captive power plants.
It was observed as the majority of furnace oil is domestically manufactured and since coal and RLNG are imported, therefore, to decrease imports and utilize domestic refineries, the government might have used this option.
Regardless, rising capacity payments and lower electricity dispatches mean higher charges for existing customers.
