Conflict with CAA, PSO likely to stop fuel facility at all airports

ISLAMABAD, Aug 08 (Alliance News): Amid the current financial challenges, if the lucrative fuel facility at Karachi’s Jinnah International Airport is to be auctioned off to a private supplier, the state-owned Pakistan State Oil (PSO) will avoid serving only loss-making airports. Disability has been expressed.

According PSO official, the PSO officials have asked the Civil Aviation Authority to adopt a uniform policy for all airports across the country.

PSO has already moved the Competition Appellate Tribunal against the Competition Commission of Pakistan’s (CCP) directive to tender the existing fuel farm, Eastern Joint Hydrant Depot at Karachi Airport and on this issue, the CAA and Notices were also issued to other respondents.

Syed Mohammad Taha, Managing Director and Chief Executive Officer of PSO, in a message sent to Secretary Petroleum, said that the company has maintained jet fuel refueling facilities at 10 airports across Pakistan as per international standards and productivity. It is investing lakhs of rupees every year to upgrade and maintain these facilities to increase capacity and efficiency.

The government supplier warned that the PSO, being a public sector entity, could not be content to operate only at loss-making airports while we were being removed from a major airport on the pretext of promoting competition. .

He recalled that when the CAA had issued the tender for setting up a jet fuel refueling facility at Skardu Airport, the PSO had explained that flights to Skardu were refueled two-way from Islamabad Airport. And due to the high cost of road transport, fuel at Skardu Airport will be very expensive, which will discourage airlines from refueling at Skardu.

However, in the national interest, the PSO participated in the tender and agreed to set up a mobile facility for a temporary period to support the government’s vision of promoting tourism, the post said.

The CEO also reminded the federal government that a few years ago, a struggling private company, Hascol Petroleum, had complained to the Competition Commission that the CAA had allowed them to set up a fuel farm at Karachi Airport for jet fuel business. Not giving.

After which the CCP directed the Civil Aviation to tender the existing fuel farm i.e. Eastern Joint Hydrant Depot (EJHD), which is a joint venture of PSO, Shell Pakistan and Total Pakistan for the last 6 decades. .

The PSO later challenged the CCP’s directive before the Appellate Tribunal, the decision of which is pending.

Other 3 airports
The PSO chief pointed out that the CAA was planning to set up jet fuel facilities at the loss-making Sukkur, Nawabshah and old Gwadar airports under ‘direct contract’ without considering the tender option. Is.

He complained that the current approach of civil aviation was not friendly to the public sector, as it was asking PSOs to operate all loss-making airports on the one hand and Karachi airport on the other. Wants to evict which is somewhat of a viable business option.

PSO officials said that the government has not only been approached to look into the matter, but the CAA has also been asked to adopt a uniform policy for all airports, whether jet fuel refueling at all airports. Try to lease the facilities through tender or direct allotment to PSOs.

Appeal for relief
It may be noted that the PSO has been raising bailout appeals to avoid international default as late payments by various institutions have drained its liquidity.

As a result, the company could not deposit 81 billion rupees in the local currency account of the federal government for onward delivery to Kuwait Petroleum Cooperation as per the contractual obligation.

So the government had to order special arrangements for payment of Rs 32 billion to meet the obligation


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