PSO resumes fuel supply to PIA aircraft

KARACHI: The Pakistan State Oil (PSO) has resumed fuel supply for 39 Pakistan International Airlines (PIA) aircraft after it received advance payment of Rs220 million ($789,804) from the airline, a PSO spokesperson confirmed on Saturday according to a report.

On Tuesday, the PIA announced it had canceled 14 international and domestic flights because of fuel shortages after the state-owned PSO canceled its supply over unpaid dues. The national carrier, slated for privatization by the government, has amassed substantial losses and unpaid dues amounting to hundreds of billions of rupees. The airline’s request for Rs23 billion ($76 million) in operational support was declined by the government, prompting Prime Minister Anwaar-ul-Haq Kakar to initiate a restructuring plan to stabilise the airline’s finances. “PKR 220 million have been received [from the PIA] for Saturday and Sunday’s refueling,” Naila Erum, a PSO spokesperson, said. “Thirty-nine flights’ list [has been] given for 21.10.23.” Besides other financial needs for repairing parts and maintaining aircraft, the airline needs Rs100 million a day to pay for fuel from PSO, which canceled supply this week over Rs1.4 billion in unpaid dues.

As of October 16, 2023, the outstanding amount owed by PIA to PSO stood at Rs26.825 billion, Erum said earlier this week. This comprises Rs14.893 billion as the principal amount and Rs11.932 billion as Late Payment Surcharges (LPS). “The payable amount against current supplies as of October 17 was Rs2,072 million,” she said. PIA is grappling with a fuel crisis as it aims to resume flights to the United Kingdom within the next two months.