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Home Business

In the wake of a disagreement with the CAA over an auction, PSO may suspend providing services to airports

by Daily Patriot
August 8, 2022
in Business, City
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PSO may stop serving airports amid auction row with CAA

ISLAMABAD: Pakistan State Oil (PSO), a state-run company, has expressed its inability to only supply fuel to airports that are losing money if Karachi’s Jinnah International Airport’s profitable fueling facility is put up for auction.

PSO officials have asked another state-owned organisation, the Civil Aviation Authority, to implement an uniform rules for all airports throughout the nation in light of the current financial difficulties.

The country’s largest fuel vendor reminded the federal government that the PSO has already filed a complaint with the competition appellate body against the Competition Commission of Pakistan’s (CCP) directive to tender the liquid fuels farm, Eastern Joint Hydrant Depot, at Karachi airport, and notices had been issued to the CAA or other respondents on the matter.

PSO Managing Director but also Chief Executive Officer Syed Mohammad Taha stated in a letter to the petroleum secretary that the fixed term contract jet fuel refuelling infrastructure at 10 airports throughout Pakistan in accordance with international standards and had been spending millions of rupees annually to upgrade and maintain these facilities in order to increase productivity and efficiency.

It recalled that PSO tried to explain that airfares for Skardu got two-way fuel from Islamabad airport & due to the high cost of road transportation, fuel price at Skardu airport would be exceptionally high, dissuading airlines to refuel from Skardu, when CAA had issued a tender for the establishment of a jet fuel refuelling facility at Skardu airport. However, PSO said that in the interest of the country, it took part in the auction and agreed to set up a temporary mobile facility to support the government’s plan to encourage tourism.

Tags: airportsCAACCPChief Executive Officerdisagreementencourage tourism.psoservicesSuspend
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