PSO receivables (Rs in millions) from power sector.

KARACHI: The Karachi Electric Supply Company said on Wednesday that the Pakistan State Oil (PSO) had drastically curtailed the furnace oil supply to the utility and it had therefore no option but to extend the duration of loadshedding in the metropolis. The utility said that it was resorting to more than nine hours of power loadshedding in residential and commercial areas and eight hours in industrial areas due to the fact that the PSO had expressed its inability to meet the KESC requirements.

A spokesperson for the KESC said that in the wake of an acute fuel shortage, the KESC had no option but to increase loadshedding hours.

The utility asked the government for an immediate intervention to resolve the fuel supply issue in the interest of the 20 million or so people of Karachi.

The gas supply to the KESC had already come to around 120 MMCFD (million cubic feet per day) due to the ongoing maintenance of the Bhit gas field and the utility had been burning more furnace oil to make up for this major shortfall in the gas supply, the spokesperson said.

However, the KESC spokesperson said, instead of the required 4,000 tonnes every day, the PSO informed the KESC that only 2,000 tonnes of furnace oil could be supplied due to the shortage at their end.

Since the shutdown of the gas field, the KESC had been making efforts to save the consumers of Karachi from extra loadshedding, but given the latest development there was no alternative but to up the loadshedding duration from a previous maximum of four and a half hours to now impending nine hours in residential and commercial areas.

The industrial areas, which were previously exempted from loadshedding, would now have to suffer eight hours of loadshedding every 24 hours, the spokesperson said.

“The KESC understands that the government needs to interfere in the matter as the PSO has informed the utility that the drop in oil supply has come about because of a delayed arrival of oil carriers.

The KESC has therefore taken the decision to increase the duration of loadshedding under great stress and the utility would go back to its normal schedule as soon as the supply of furnace oil is normalised,” the spokesperson added.

A spokesperson for the PSO, however, said that due to the circular debt the PSO had been constrained with respect to import of furnace oil. Furthermore additional volumes required by the KESC during the gas shortage were unexpected and not part of its import planning.

As refineries stopped supplies to the PSO, the oil company was dependent only on imports, the spokesperson said.

“We have limited furnace oil to fuel the entire power sector. Therefore, until our next consignment arrives we will be able to supply only 2,000 tonnes to the KESC,” she said, adding that since normal gas supply to the KESC would be resumed on April 30, the power utility should not be facing any difficulties.

“Despite financial constraints, the PSO is striving hard to meet the requirements of the power sector across Pakistan.”The spokesperson claimed that the supplier company was trying to ensure uninterrupted supplies to the entire power sector, including Hubco, Kapco, Wapda and IPPs.

In order to fulfil its responsibilities, the PSO would not be able to provide additional furnace oil to the KESC for the next two days.

The spokesperson said the PSO wanted the power sector to streamline payments to import the required volume of the product.

According to a PSO report sent to the committee for liquidity problems of oil marketing companies on Wednesday, total receivables were Rs185,978 million.

It included Rs42,514 million from Wapda; Rs85,170 million from Hubco; Rs38,157 million from Kapco; Rs2,070 million from the PIA; Rs313 million from the OGDC; Rs5,000 million from the KESC and Rs908 million from the Pakistan Railways.