ECC approves gas tariff hike for industry, rejects domestic increase

January 26, 2025 (MLN): The Economic Coordination Committee (ECC) has decided not to increase the gas tariff for domestic consumers while endorsing a hike in the tariff for captive power plants to ensure the gas sector's required revenue for FY 2024-25. 

The meeting, chaired by Federal Minister for Finance Senator Muhammad Aurangzeb, discussed a summary submitted by the Petroleum Division regarding an upward revision of the indigenous gas tariff for industry (captive power) and non-protected domestic slabs.

After thorough discussions, the ECC approved an upward revision in the gas tariff for captive power plants from Rs 3000 per metric million (mmbtu) to Rs 3500 per mmbtu, according to the press release issued.

This increase is aimed at ensuring the necessary revenue for the gas sector during FY 2024-25. 

However, the committee decided not to raise tariffs for domestic consumers in an effort to shield them from additional financial burdens. 

The ECC also instructed the Petroleum Division to implement measures for the imposition of a grid transition levy on captive power plants to improve energy sector efficiency.

Copyright Mettis Link News