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Rs12 billion dues: Cash-starved PSO suspends fuel supply to PIA

Rs12 billion dues: Cash-starved PSO suspends fuel supply to PIA

ISLAMABAD: Pakistan State Oil (PSO) suspended fuel supply to Pakistan International Airlines (PIA) for not clearing the dues.

According to PSO spokesperson, a notice regarding payment of dues worth Rs12 billion was sent to the national carrier two days back. It was clearly notified that the oil company would suspend supply if dues were not cleared by December 11.

The spokesperson further remarked that PIA has failed to release money despite repeated requests and assurances, which was clear breach of the aviation fuel supply agreement.

Under the agreement, PIA is required to make payment within seven days of oil delivery.

On the other hand, spokesperson for the Pakistan International Airlines (PIA) told that they have started buying fuel from other suppliers, thus, flight operations would not be affected.