Power division, industry seek fuel levy cut to ease power costs
• CPPA seeks Rs2.56 per unit additional fuel cost adjustment to recover Rs33bn • Industrial representatives insist fuel levies inflating generation costs ISLAMABAD: The manufacturing sector and the power division on Thursday unanimously called for the removal or reduction of the petroleum levy on furnace oil and diesel used for power generation, stressing that it was resulting in about Rs10 per…
The manufacturing sector and power division in Pakistan have jointly urged the removal or reduction of petroleum levies on furnace oil and diesel used for electricity generation. This levy increase is causing about Rs10 extra per unit in electricity costs, according to industry representatives. Nepra conducted a hearing on the CPPA's request for a Rs2.56 per unit additional monthly fuel cost adjustment (FCA) to recover Rs33 billion for electricity consumed in September.
Industrial representatives argue that the current levies, particularly Rs76,000 per tonne for furnace oil and Rs80 per litre for diesel, are driving up generation costs and burdening the government with additional subsidies. They claim that reducing these levies could lower generation costs from around Rs62 to Rs44-50 per unit. Nepra and industry representatives also raised concerns about discrepancies in power generation data and coal procurement practices at the Port Qasim power plant. They demanded transparency and a thorough investigation.
Written by urgent.news from Dawn's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
