Pakistan State Oil has floated tenders for the import of 780,000 tonnes of high sulphur furnace oil to meet the demand in the peak winter season.

Sources said that PSO has circulated tenders for import of 12 furnace oil vessels of 65,000 tons each for the months of November, December and January. On an average four vessels arrive each month.

In addition, the state oil company has also sought offers for the import of 245,000 tonnes of Mogas ie 3 vessels of 35,000 tonnes each for November and 4 similar vessels for December in the pretext of projected gas shortage in winter. Moreover, a cumulative of 50,000 tonnes of jet fuel would also be imported for November and December.

PSO supplies a total of 580,000 tonnes of furnace oil to the power sector each month. According to the break up, 160,000 tonnes is supplied to WAPDA and GENCOS; 150,000 tonnes to HUBCO; 120,000 tonnes to KAPCO and 150,000 tonnes to other IPPs.

An official at the state oil company said that PSO, well aware of its national responsibility, maintains ample stock of the commodity through imports, procured from refineries and spillover from previous months. Pakistan is to face worst-ever gas and electricity crises in the coming winter which may result n complete closure of industry, compressed natural gas filling stations and fertilizer plants.

Though the Finance Ministry has promised at the highest level that it would arrange funds for import of furnace oil for the power sector to minimise load-shedding, reports suggest that the ministry has not been able to arrange funds covering more than one-month import of the furnace oil.

The government circles have expressed fear that the entire country would come out on the streets in protest due to shortage of gas, especially when the public transport cost would rise.

One of the refineries had already conveyed to the government that it would not supply petroleum products to Pakistan State Oil because of non payment of its outstanding amount.

The Federal Cabinet has been recently informed about the electricity crisis that it was mainly due to reduction in hydel generation by 3,000 MW loss of 2,000 MW due to fuel and gas shortage and tripping of Chashma Nuclear Power Plant.

The sources said that if the Finance Ministry arranges funds for import of furnace oil to generate electricity from the old public sector generation plants than the electricity prices would have to increase manifold due to expensive generation.

(Sourced from www.thenews.com.pk)