ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) has announced a hike in gas tariffs for Captive Power Plants (CPPs), raising the price from Rs 3,000 to Rs 3,500 per MMBtu, effective February 1, 2025. A notification clarified that the increase does not apply to commercial tandoors, domestic consumers, CNG stations, fertilizers, or the power and cement sectors.
The decision follows the Economic Coordination Committee’s (ECC) approval, chaired by Federal Minister for Finance Mohammad Aurangzeb, to generate the necessary revenue for the gas sector in the fiscal year 2024-25. While domestic consumers were spared the hike to avoid additional financial strain, the increase for CPPs has sparked concerns within the textile sector.
Textile Industry Raises Red Flag
The Pakistan Textile Council (PTC) has strongly criticized the 16.7% tariff hike, citing its adverse impact on an already strained sector. The textile industry, which contributes over 60% of Pakistan’s total exports and supports millions of jobs, relies heavily on CPPs for uninterrupted energy supply.
PTC Chairman Fawad Anwar expressed concern that the hike, alongside high production costs and global competition, could erode the competitiveness of Pakistani textiles in international markets. He labeled the move as part of an “anti-export bias” in government policy, prioritizing fiscal revenue over the sustainability of export-oriented industries.
“This decision severely undermines the progress made in export growth and jeopardizes Pakistan’s balance of payments stability. With rising energy costs, borrowing rates, and taxes, this tariff hike adds another challenge for exporters striving to remain competitive,” said Anwar.
The PTC urged the government to reverse the tariff hike, adopt stable RLNG pricing, rationalize UFG, eliminate cross-subsidies, and develop a comprehensive long-term energy policy to support industrial competitiveness.
The textile sector, a vital pillar of Pakistan’s economy, warned that the decision could discourage investment, threaten jobs, and hinder export-led growth at a time when economic stabilization is critical.
