ECC approves gas tariff hike for CPPs

ISLAMABAD: In a bid to comply with the IMF conditions, the Economic Coordination Committee (ECC) of the Cabinet has approved hiking of gas tariff for Captive Power Plants (CPPs) from Rs3,000 to Rs3,500 per mmbtu.

The ECC, however, has rejected gas tariff for domestic (residential) consumers for different slabs in the range of Rs100 per unit. According to the summary forwarded by the Ministry of Petroleum before the ECC, there was no tariff hike proposed for protected consumers of domestic for up to 0.25 hm3 at Rs200, up to 0.5 hm3 at Rs250, up to 0.6 hm3 at Rs300 and up to 0.9 hm3 at Rs300.

For non-protected category of domestic consumers of gas, tariff was proposed to be hiked up to 0.25 hm3 from Rs500 to Rs600, up to 0.6 hm3 from Rs850 to Rs950, up to 1 hm3 Rs1,250 to Rs1,350, up to 1.5 hm3 Rs1,450 to Rs1,550, up to 2 hm3 Rs1,900 to Rs2,000, up to 3 hm3 Rs3,300 to Rs3,400, up to 4 hm3 Rs3,800 to Rs3,900, above 4 hm3 from Rs4,200 to Rs4,300.

There is no increase proposed in gas tariff for bulk at Rs2,900 mmbtu, special commercial Roti Tandoor at Rs700 per mmbtu, commercial Rs3,900 per mmbtu, power Rs1,050 per mmbtu, fertilizer Rs1,597 per mmbtu, cement Rs4,400 per mmbtu, general industry Rs2,150 per mmbtu and CNG Rs3,750 per mmbtu.

The ECC met on Saturday to discuss a summary submitted by the Petroleum Division for an upward revision of indigenous gas tariff for industry (captive power) as well as non-protected domestic slabs. The meeting was chaired by Federal Minister for Finance Senator Aurangzeb with Federal Minister for Petroleum Musadik Masood Malik, Minister for Power Awais Khan Leghari, Minister of State for Finance and Revenue Ali Parvez Malik, Chairman Ogra, Chairman SECP, federal secretaries and senior officers from relevant divisions in attendance.

The ECC decided to approve upward revision in gas tariff for CPPs to ensure required revenue for gas sector during FY2024-25. However, it did not agree to increase the tariff for domestic consumers with a view to protecting them from additional burden.

The ECC instructed the Petroleum Division to take necessary measures for imposition of a grid transition levy on the CPPs to enhance the energy sector efficiency.