PSO cuts off fuel supply to PIA, passengers stuck at airports

ISLAMABAD: Pakistan State Oil (PSO) has suspended the fuel supply for domestic flights operated by Pakistan International Airlines (PIA) due to the national flag carrier’s failure to pay its dues.

This has resulted in several PIA planes being grounded, causing immense hardships for thousands of travellers who were stranded at various airports across the country.

PSO said that PIA’s non-payment of agreed-upon dues made it difficult for the company to supply fuel to the national flag carrier.

Sources said that the fuel shortage for aircraft led to several domestic flights being cancelled, causing significant distress for passengers.

A PSO official from the fuel supply department, who spoke on condition of anonymity, confirmed to Urdu News that PSO had stopped supplying fuel to PIA for domestic flights from October 16.

He said that PSO had tried to facilitate the immediate payment of outstanding dues by providing fuel to the national airline under a new formula.

“Under this new formula, PSO and PIA had agreed that the payment for the new purchase of fuel by the airline would be made on time while payments of dues would be made under the previous policy.

“However, it seems that PIA is persistently violating the agreed-upon formula,” the official said.

According to PSO officials, the chief financial officer of PIA had promised to deposit Rs100 million last week, which has not been done yet.

It is estimated that PIA owes Rs2.64 billion to PSO.

According to the sources, PSO’s suspension of fuel supply to PIA has affected operations at airports in Multan, Sukkur and Gilgit, where PIA flights were cancelled due to a lack of fuel.

A PIA spokesperson also confirmed the flight cancellations but did not comment on the disruption in fuel supply.

In addition to the financial issues affecting the airline’s operations, PIA has grounded several of its planes due to maintenance concerns amid financial struggles.

The national airline is grappling with financial difficulties despite government bailouts, making it challenging for the airline to maintain regular flight schedules.

Currently, PIA’s flight operations are ongoing with 31 aircraft out of its fleet of 49 aircraft.