ISLAMABAD: Federal government on Wednesday approved a supplementary grant of Rs4 billion for a further gas subsidy to Punjab-based five export-oriented sectors for two months.
In a notification, the Petroleum Division directed the Sui Northern Gas Pipeline Limited (SNGPL) stating, “Supplementary grant of Rs4 billion by enabling SNGPL to disburse further subsidy of Rs2 billion each for the period May and June on supply of gas/ RLNG to five export-oriented sectors.”
“You are therefore advised to continue the supply of gas of concessionary tariff of $9 per mmbtu for months of May and June 2023 to export-oriented sector in line with the Economic Coordination Committee (ECC) decision on July 25, 2022, while remaining within the budget of Rs2.225 billion”, the notification issued to the Sui Northern Gas Pipelines Limited (SNGPL) says.
The notification further says, “Based on the actual subsidy claim for the month of April 2023, budgetary saving has been identified for the continuation of concessionary tariff of $9 per mmbtu for export-oriented sector till June 2023”.
Earlier, the government had withdrawn Rs80billion subsidy on gas to five export-oriented sectors and SNGPL had informed its noble customers about an end to the supply of subsidised gas from May 1, 2023.
On July 25, 2022, the ECC decided to increase the RLNG rate to $9 per mmbtu for five export-oriented sectors across Pakistan and gave approval for an increase in indigenous gas price for export-oriented sectors at Rs1,350 per mmbtu and for the general industry at Rs1,550 per mmbtu.
The meeting of the ECC presided over by the then Minister for Finance, Dr Miftah Ismail, was submitted a summary by the Ministry of Energy with regard to the RLNG rate at $9 per MMBTU, all-inclusive to five export-oriented sectors across Pakistan.
Furthermore, the ECC was informed that a subsidy cover of Rs40 billion for RLNG had been allocated under the federal budget 2022-23 which will be reviewed on a quarterly basis.
Copyright Business Recorder, 2023
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