Govt sets captive gas price at Rs4,500/MMBtu, levies to rise up to 20%

By MG News | January 03, 2025 at 09:56 PM GMT+05:00

0:00

January 03, 2025 (MLN): To further discourage the utilization of captive gas units, an initial levy of 5% will be imposed on the base price of Rs4,500 per MMBtu, sources informed Mettis Global.

This development was unveiled during a meeting held today with Finance Minister Senator Muhammad Aurangzeb to address the issue of captive power plants.

The meeting aimed to determine the gas price at which the spark spread for captive power units would achieve grid parity.

The levy will increase to 10%, raising the tariff to Rs4,950 per MMBtu, and will continue to incrementally rise, reaching up to 20%.

The objective is to align captive gas pricing with broader energy policy goals and incentivize a transition to grid-based energy consumption.

It was communicated to the Minister that grid parity is achieved at a gas price of Rs4,500 per MMBtu.

Consequently, this rate was established as the base price for captive gas units.

Copyright Mettis Link News

Related News

Name	Price/Vol	%Chg/NChg
KSE100	120,023.24 136.80M	0.02% 20.65
ALLSHR	74,956.95 415.25M	0.09% 64.82
KSE30	36,533.23 44.37M	0.25% 91.50
KMI30	177,648.07 53.46M	0.48% 854.02
KMIALLSHR	51,412.96 224.87M	0.22% 113.15
BKTi	30,161.85 6.28M	0.10% 29.54
OGTi	27,008.50 5.66M	0.59% 157.59

Symbol	Bid/Ask	High/Low

Name	Last	High/Low	Chg/%Chg
BITCOIN FUTURES	101,335.00	101,705.00 99,090.00	-2085.00 -2.02%
BRENT CRUDE	78.19	81.40 78.11	1.18 1.53%
RICHARDS BAY COAL MONTHLY	88.00	0.00 0.00	-3.70 -4.03%
ROTTERDAM COAL MONTHLY	103.85	0.00 0.00	0.10 0.10%
USD RBD PALM OLEIN	998.50	998.50 998.50	0.00 0.00%
CRUDE OIL - WTI	75.02	78.40 74.91	1.18 1.60%
SUGAR #11 WORLD	16.53	16.73 16.44	0.22 1.35%