The government has decided to impose an initial levy of 5% on the base price of Rs4,500 per MMBtu for captive gas units, with incremental increases up to 20%, according to sources quoted by Mettis Global News.
The decision was unveiled during a meeting chaired by Finance Minister Senator Muhammad Aurangzeb, aimed at addressing the pricing framework for captive power plants and encouraging a shift to grid-based energy.
The levy will rise to 10%, raising the tariff to Rs4,950 per MMBtu, with further adjustments expected to drive grid parity. The established base price of Rs4,500 per MMBtu is deemed optimal for achieving grid parity, aligning captive gas pricing with the government’s broader energy policy objectives.
