The federal government has announced the termination of the Rs 80 billion subsidy on sui gas for five export sectors in the fiscal year 2022-23. According to a notification issued on Saturday, Sui Northern Gas Pipelines Limited (SNGPL) has withdrawn the concessionary tariff for these five export-oriented sectors.
The notification stated, “This is to inform that the subsidy allocated by the GOP for the supply of Gas/RLNG at a subsidized rate to Five Export Oriented Sectors for 2022-23 has been fully exhausted.” As a result, SNGPL is obliged to retract the concessionary tariff for these sectors, effective May 1, 2023.
SNGPL also clarified that gas/RLNG for industrial units would remain available at the OGRA-notified tariff, assuring users of their continued cooperation and quality services.
Previously, the government supplied RLNG to textile, sports, surgical, leather, and jute sectors at the rate of $9. Now, these export sectors will need to pay an additional $4 per MMBtu for RLNG. The federal government had been providing over Rs 80 billion in gas subsidies annually.
The discontinuation of these concessions comes in response to the persistent demands of the IMF and other sectors.
