But he added that sales of high-speed diesel and fuel oil have fallen in the country because of damage to roads and infrastructure, reducing transportation.
Pakistan State Oil is now facing difficulties supplying jet fuel for the relief operation being conducted by the country's army and non-government organizations, as well as for helicopters and planes sent over by other countries to help people affected by the floods, said the official at the company who wished not to be named.
Unprecedentedly heavy monsoon rains since July caused floods to sweep south along the course of the 3,200 km Indus River, devastating low-lying areas of Punjab and Sindh provinces, the densely populated economic and agricultural heartland of Pakistan, damaging some 722,000 homes.
"Huge outstanding amounts owed by state-run companies and power companies against the sale of oil is hurting PSO, as the total amount reached Rupees 140 billion [$1.62 billion]," the official said.
In addition to this, PSO has to pay around Rupees 115 billion to refineries for the purchase of products including high-speed diesel and fuel oil.
The source added that PSO needs funds from the government to keep the supply of products--especially jet fuel--steady.
"We have asked the government to halt exports of jet fuel to Afghanistan made by the Attock Refinery, amounting to 4,000 mt/month," the official said.
Last week, PSO, the country's biggest retail oil supplier, estimated the company's initial costs from flood damage to be Rupees 2.9 billion, with several of its outlets across the country affected. This could rise once damaged sites are accessible and a final assessment can be made, the company
official said.
PSO's Lalpir Oil Depot in Punjab, the largest fuel oil storage site in that region, experienced most of the damage. The depot supplies 50,000 mt of fuel oil per month from the Parco refinery to power companies AES Lalpir and Kot Addu Power through a pipeline. Lalpir was under more than six feet of water last week, so the storage site has been inaccessible. It is estimated that it will take at least four to six weeks for the depot to be operational as the water will need to recede completely.
China Chemical Weekly: http://news.chemnet.com/en/detail-1411716.html
