Government Imposes New Levy on Captive Gas Units to Promote Grid-Based Energy

Government Imposes New Levy on Captive Gas Units to Promote Grid-Based Energy

| 04-Jan-2025

The government has announced an initial 5% levy on the base price of Rs4,500 per MMBtu for captive gas units, with incremental hikes up to 20%, according to sources cited by Mettis Global News.

The decision, revealed in a meeting chaired by Finance Minister Senator Muhammad Aurangzeb, aims to refine the pricing framework for captive power plants and promote a shift to grid-based energy.

The levy will increase to 10%, raising the tariff to Rs4,950 per MMBtu, with further revisions planned to achieve grid parity. The base price of Rs4,500 per MMBtu is considered optimal for aligning captive gas rates with the government’s broader energy policy goals

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