ISLAMABAD: Expecting a disbursement of Rs10 billion within 24 hours to ease financial difficulties of Pakistan State Oil (PSO), caretaker Petroleum Minister Sohail Wajahat Siddique said on Friday that fuels (furnace oil and gas) would be provided to various sectors and consumers purely on the basis of their efficiency.

Talking to reporters at his maiden briefing after taking over as Petroleum Minister, Mr Siddique said he had a meeting with Water and Power Minister Dr Mussadik Malik in the morning and agreed to work together to put in place a mechanism to bring down circular debt of PSO in a limited period of 45 to 50 days without recurrence.

Petroleum Secretary Abid Saeed, who assisted Mr Siddique, said total receivables of PSO had exceeded Rs138bn and an amount of Rs10bn was expected to be released within 24 hours.

He did not agree with a journalist that oil and gas companies, including PSO, were in bad shape. “None of our companies are in bad shape. We are in very good condition but only need to improve governance,” he said, adding that human resources had to be improved and those failing to improve performance would have to go.

He said the current team at the petroleum ministry was circulating some parameters among chief executives and senior professionals of oil and gas companies and for different wings and attached departments of the ministry. These include a cut in costs, an increase in cash flows, securing growth of the companies and human resource, an improved processes and productivity so that profits are increased to facilitate investments for the betterment of communities and people.

The petroleum minister was of the opinion that since the priority of the caretaker government was to hold elections on time in a transparent and fair manner, the limited time available at its discretion would be utilised to put in place a future roadmap and reap the benefit through efficiency.

Mr Siddique said he had given a target to reduce unaccounted for gas (UFG) losses to three per cent from 11-16pc and would meet managements of the two gas utilities to discuss how and when the target could be achieved.

In reply to a question, he said his priority would be to run the local refineries to their full capacity in order to reduce foreign exchange spending on imported products. At the same time “we will try to improve the local shipping industry”.

The minister said as head of a petroleum sector think tank and chairman of the board of directors of PSO, he had suggested shifting the refineries to 380 centi-stroke (CST) furnace oil from 180 CST. He said PSO had shifted to 380 CST and had been able to secure $20 per ton reduction in price because 13 companies had taken part in the bidding, instead of three for furnace oil of previous specifications.

With a total annual turnover of about Rs1200bn, the shift in quality of furnace oil could provide a 10pc saving, leading to Rs120bn annual saving. This could be achieved in five to six months of minor changes in the refineries, he added.

Responding to a question, Mr Siddique said as chairman of the PSO board he had been able to investigate a base oil import scam and all involved in it had been identified and relevant agencies were following the case.