PSO has recommenced the provision of fuel to PIA aircraft

The Pakistan State Oil (PSO) has reinstated fuel provisions to 39 Pakistan International Airlines (PIA) aircraft following the confirmation by a PSO spokesperson on Saturday that they had received an advance payment of Rs220 million ($789,804) from the airline, as reported.

In Karachi, Pakistan, the Pakistan State Oil (PSO) has resumed the supply of fuel to 39 Pakistan International Airlines (PIA) aircraft after the airline made an advance payment of Rs220 million ($789,804), as confirmed by a PSO spokesperson in a report on Saturday.

Earlier in the week, PIA had to cancel 14 international and domestic flights due to fuel shortages when the state-owned PSO halted its supply over unpaid dues. The national carrier, which is slated for privatization by the government, has accrued substantial losses and unpaid dues amounting to hundreds of billions of rupees. The government rejected the airline’s request for Rs23 billion ($76 million) in operational support, prompting Prime Minister Anwaar-ul-Haq Kakar to initiate a restructuring plan aimed at stabilizing the airline’s finances.

Naila Erum, a spokesperson for PSO, stated, “PKR 220 million has been received from PIA for refueling on Saturday and Sunday, with a list of thirty-nine flights scheduled for October 21, 2023.” In addition to other financial requirements for aircraft repairs and maintenance, the airline needs Rs100 million daily to cover its fuel costs from PSO, which had suspended supply due to outstanding dues amounting to Rs1.4 billion.

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