Government Announces Major Gas Price Hike for Industrial Sector

Islamabad:The government has announced a significant increase in gas prices for the industrial sector. The decision was made during an Economic Coordination Committee (ECC) meeting, chaired by Finance Minister Mohammad Aurangzeb.

During the meeting, the Petroleum Division presented a summary regarding the proposed gas price hike for the industrial sector (captive power) and unprotected domestic categories. After detailed deliberations, the ECC approved the increase in the gas tariff for captive power plants, raising it from Rs. 3000 per MMBTU to Rs. 3500 per MMBTU. This adjustment aims to ensure the necessary revenue generation for the gas sector during the fiscal year 2024-25.

However, the committee decided not to increase gas tariffs for domestic consumers to avoid placing additional financial burdens on them. The ECC also directed the Petroleum Ministry to take immediate steps for the enforcement of the Grid Transition Levy on captive power plants to improve the performance of the energy sector.

The meeting was attended by Federal Petroleum Minister Musadik Masood Malik, Minister for Energy Sardar Owais Ahmad Khan Leghari, Minister of State for Finance and Revenue Pervez Malik, Chairman Ogra, Chairman SECP, federal secretaries, and senior officials from relevant divisions.