Islamabad, Jan 26: The Economic Coordination Committee (ECC) convened to address the Petroleum Division’s proposal for revising indigenous gas tariffs for captive power plants and non-protected domestic slabs. Chaired by Finance Minister Senator Muhammad Aurangzeb, the meeting brought together key officials, including Petroleum Minister Musadik Masood Malik and Power Minister Sardar Awais Ahmed Khan Leghari.
Following an in-depth analysis, the ECC approved increasing the gas tariff for captive power plants from Rs. 3,000 per metric million British thermal units (mmbtu) to Rs. 3,500 per mmbtu. This revision aims to meet revenue targets for FY 2024-25 and ensure financial stability in the gas sector. Despite the hike for industry, the ECC decided against raising tariffs for domestic consumers, prioritizing their financial relief amidst rising economic pressures.
To further optimize the energy sector, the ECC directed the Petroleum Division to implement a grid transition levy on captive power plants. This measure is expected to encourage energy efficiency and reduce reliance on outdated systems.
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The session included participation from officials such as OGRA and SECP chairpersons, federal secretaries, and senior officers from related departments, underscoring the collaborative approach in addressing energy sector challenges.
This decision reflects the government’s balancing act between supporting industrial needs and safeguarding domestic users, ensuring a sustainable path for the energy sector in the upcoming fiscal year.
