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PSO cuts by half furnace oil supply to power plants(Express Tribune (Pakistan) Via Acquire Media NewsEdge) Pakistan State Oil - the state-owned oil marketing giant bitten by financial crunch - has announced that it will further scale down fuel supplies to power plants by 50% as stocks are falling rapidly, setting off fears of a power crisis. Earlier, PSO had been supplying on credit 22,000 tons of furnace oil per day to power plants, but the cash crunch forced it to curtail the quantity to 15,000 tons. On Monday, PSO announced a further reduction to 8,000 tons per day. The oil marketing firm took the decision following release of a meagre Rs5 billion on Monday against demand for Rs50 billion for clearing part of its receivables. Now, it has sought immediate release of Rs45 billion to stave off imminent default on payments to local and international fuel suppliers. In a letter sent to the finance, water and power ministers and adviser to the prime minister on petroleum and natural resources, PSO said “keeping in view the current stocks and the uncertain chain position, PSO is compelled to reduce the current credit rate from 15,000 to 8,000 tons per day.” |