PNSC to carry petrol for PSO from March

This will result in savings of $10 million a year.

KARACHI: Pakistan State Oil (PSO) has announced that it will start importing motor gasoline (petrol) through vessels of the Pakistan National Shipping Corporation (PNSC) from March next year, a step that will lead to savings of millions of dollars annually.

“This has been done in light of directives given by the Economic Coordination Committee (ECC), which states that all government organisations should designate the national shipping line, PNSC, as their shipping partner of choice,” PSO said in a statement issued on Thursday.

Being the nation’s leading public sector organisation, PSO said it had always strictly implemented decisions of the government. It is the first national company to start bringing imported petroleum products through PNSC.

Recently, the oil marketing giant signed a Contract of Affreightment with PNSC for shipment of furnace oil from foreign ports to Pakistan’s shores. This is expected to lead to savings of $25 million a year and $125 million in five years.



From March 2013, PSO will start importing motor gasoline through PNSC on free-on-board (fob) basis. This is expected to save another $10 million annually and $50 million in the next five years.

PSO said its partnership with PNSC would result in total savings of approximately $175 million over a period of five years. “This partnership between two national companies will not only save foreign exchange, but will also help create employment opportunities in the oil shipping business,” it added.

Published in The Express Tribune, December 21^st, 2012.