Govt scraps Rs80 billion subsidy on gas tariffs for export sector
Business
Five sectors will have to pay additional $4 per MMBtu
FAISALABAD (Dunya News) – Federal government on Sunday withdrew an Rs80 billion subsidy on natural gas for five export-oriented sectors for the ongoing fiscal year 2022-23.
The government had been paying the subsidy to the textile, sports, surgical, leather, and jute sectors as concessionary tariffs. It would not be available from May 1.
These sectors would have to pay an additional $4 per MMBtu as the supply of RLNG to these sectors would end at $9 per MMBtu.
The SNGPL, in a letter to a consumer, had informed about the withdrawal of the subsidy and expressed its constraint to withdraw concessionary tariff to the five sectors. "Please note that Gas/RLNG supply to your industrial units shall remain available at Ogra notified tariff w.e.f 01-05-2023,” read the SNGPL letter.
Pakistan Hosiery Manufacturers Association (PHMA) rejected the move saying it would push the industry into crisis.
