The federal government has approved the extension of the monthly levy rate, previously applied to captive power consumers of Sui Southern Gas Company Limited (SSGCL) and Sui Northern Gas Pipelines Limited (SNGPL), to consumers of third-party companies that supply gas to captive power plants, Business Recorder reported.
This decision follows a recommendation from the Petroleum Division and aims to ensure consistent regulation across all suppliers.
The move comes under the framework of the Off the Grid (Captive Power Plants) Levy Act, 2025, which was enacted and notified on June 10, 2025. The Act allows for the validation, imposition, and collection of an off-the-grid levy on natural gas consumption by captive power plants. The levy rate is determined based on the difference between industrial B3 power tariffs and the self-generation cost of captive power plants at OGRA-notified gas tariffs.
The federal government had previously notified the levy for SSGCL and SNGPL, with rates set to increase progressively over the next year, reaching 20% by August 2026. The extension of this levy to third-party suppliers aims to streamline the levy collection process and maintain consistency in the energy sector.
While gas purchase and sale prices are not currently regulated for third-party suppliers to captive power plants, the Petroleum Division’s proposal to extend the levy was approved after consultations with the Ministry of Law and Justice. The amendment will allow the Petroleum Division to adjust the schedule of the relevant Act, ensuring that third-party gas suppliers are subject to the same levy regulations as SSGCL and SNGPL.
