Govt Still Unsure About Increasing Gas Prices for Captive Power Plants on IMF Demand

The federal government has yet to decide on increasing gas tariffs for Captive Power Plants (CPPs), Finance Ministry sources told ProPakistani. Sources revealed that while the Petroleum Division has proposed disconnecting gas supplies to CPPs instead of raising tariffs, the International Monetary Fund (IMF) has rejected this suggestion. CPPs have expressed strong opposition to any tariff hike and prefer to maintain current rates. However, the government is preparing for gas tariff rebasing this month to comply with IMF conditions and to ensure that the program stays on track. If tariffs are raised, prices could increase by up to Rs. 1,100 per MMBTU, with the new rates expected to take effect from February 2025. Meanwhile, CPPs may face legal challenges if gas connections are disconnected, and they have signaled their intention to pay according to any notified tariff changes. Also, the Prime Minister has yet to make a decision on the summary regarding the tariff hike, sources added.