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Power crisis to go from bad to worse
Monday, January 26, 2009
By Khalid Mustafa
ISLAMABAD: The National Refinery Limited (NRL) on Saturday dropped another bombshell on the Pakistan Electric Power Company (Pepco) when it stopped the supply of furnace oil to thermal power stations of the state-owned company, a senior official in the Ministry of Petroleum and Natural Resources told The News.
A day before, the Attock Petroleum had ceased fuel supply to Pepco.The decision of two refineries will deprive the government thermal powerhouses of 85,000 to 90,000 tonnes of furnace oil per month.
This would alarmingly aggravate the power crisis across the country, the official said.“The Attock Refinery Limited (ARL) has decided to curtail from tomorrow (January 26) the supply of diesel, jet fuel and petrol to state-owned Pakistan State Oil (PSO) after its marketing company, Attock Petroleum, discontinued the furnace oil supply to Pepco,” the official said.
The Attock Refinery had earlier served notice on PSO, threatening that it would not hesitate to massively curtail the supply of petroleum products such as diesel, jet fuel and furnace oil if its Rs 12 billion dues were not cleared.
So, due to non-payment of dues, the ARL would cut the supply of POL products to PSO from tomorrow (Monday), he said.Following the footprints of the ARL, the NRL Karachi also ceased with immediate effect the supply of furnace oil to Pepco, putting the government in deep trouble, leading to dearth of petroleum products and massive reduction of fuel to thermal houses for power generation.
This will result in immense shortage of petroleum products, especially the furnace oil, worsening the prevailing energy crisis.When contacted, ARL Managing Director Muhammad Adil Khattak confirmed that after ceasing the fuel supply to Pepco, the ARL was going to reduce the supply of diesel, jet fuel and petrol to PSO from Monday (tomorrow).
Until the PSO pays back Rs 12 billion arrears, the supply will not be restored.The official in the Petroleum Ministry said that the NRL Karachi ceased the supply of furnace oil to PSO for Pepco in the wake of non-payment of dues, which had amounted to Rs 8 billion.
To a question, he said Pepco also needed to pay Rs 7 billion to the Attock Petroleum Company and the government owed Rs 3 billion PDC (price differential claim) too.It means that the government owes Rs 30 billion to the Attock Group of Companies.
“In the wake of losses being incurred by local refineries because of reduced margins and faulty pricing formula, the Attock Group of Companies is no more in a position to cater to the needs of the government,” Adil Khattak said.
“We have for so many times helped the government by going out of the way, but since the ARL and the NRL are commercial entities, so commercialism demands strictness in principles of business,” he added.
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ISSN 1563-9479 
