The Economic Coordination Committee (ECC) has agreed to increase the gas tariff for captive power plants while maintaining local consumer rates without change.
The decision was taken during a meeting on Saturday, chaired by the Federal Minister of Finance, Mohamed Orangezib.
The gas tariff for captive power plants has been raised from Ru rupe. 3000 to rupees. 3500 per mmbtu, effective for the fiscal year 2024-25.
This procedure aims to generate the revenues required for the gas sector, according to an official statement by the Ministry of Finance.
ECC rejected a proposal to increase customs duties for local consumers, noting concerns about the additional financial burden on families.
The committee also instructed the Petroleum Department to implement the network’s transfer tax on captive energy stations to enhance the performance of the energy sector.
The meeting reviewed a summary presented by the Petroleum Section, and suggested that gas definitions for the industry and some local panels.
Among the attendees are the Minister of Petroleum, Mossadik Masoud Malik, the Minister of the Authority, Sardar Awais Ahmed Khan Legari, and senior officials.
The decision comes after weeks of opposition from industrialists and exporters, who have argued that the high costs of benefit may harm small and medium enterprises (SMES).
Meanwhile, OGRA recently recommended a 26 % increase in gas for rupees. 847.33 billion during the current fiscal year.
Under the revised tariff structure, the average price of gas is determined at rupees. 1,762.51 for each MMBTU for Sui Southern Gas Company (SSGC) and RS. 1,778.35 for each MMBTU for sui northern Gas Pipeines Limited (SNGPL).
