Home Textile APTMA urges revised gas bills by SNGPL

APTMA urges revised gas bills by SNGPL


Mr Adil Bashir, Chairman APTMA Punjab has urged the government to direct SNGPL, Sui Northern Gas Pipeline Ltd to issue revised gas bills to the eligible industry @ US$ 6.5/MMBTU all inclusive on gas consumption for both captive and processing use. He also added that notification for providing electricity at 7.5 cents/kWh be immediately issued which is going to enable the exporting industry to focus on increasing exports and undertaking new investment initiatives.

For revival and growth of the textile industry in Punjab, a delay in the implementation of energy affordability initiative of the government has panicked the industry as the industry is being billed notified price of RLNG US$ 12.5389/MMBTU instead of US$ 6.5/MMBTU for the month of October 2018 which he informed does not include GIDC.

Since the industry is not in a position to pay these bills he said that an immediate intervention from the government is required at the moment.

According to him, the government, under the visionary leadership of Prime Minister Imran Khan, has announced regionally competitive energy (both gas and electricity) for the exporting industry falling in the 5 zero rated sectors. The Economic Coordination Committee (ECC) in its meeting held on 16th September 2018 had decided to provide gas to the exporting industry w.e.f 27th September 2018 as under:

He said the ECC had also decided that gas supply to the industrial sector (exporters of 5 zero-rated sectors and their captive powers (clarified in OGRA notification dated October 2018) namely; textile (including jute), carpets, leather, sports and surgical goods) in Punjab will be revised from 28:72 to 50:50 for domestic gas and RLNG respectively. The weighted average gas tariff of such consumers shall be US$6.5/MMBTU. Gas price of similar consumers of SSGC and those of SNGPL in Khyber Pakhtunkhwa will remain unchanged.

Furthermore, the priority of allocation of system gas will be revised to bring the 5 zero sectors at 2nd priority along with the power sector.

He said the industry had appreciated the industry friendly approach of the government, as it will increase exports, revive closed capacity and encourage new investment to produce exportable surplus.

However, he lamented that it is unfortunate that interpretation to implement above decision is not only being delayed but also being conveyed contrary to the decision of the ECC and vision of the government. The Ministry of Finance has issued Office Memorandum dated 2nd November 2018 for SNGPL to implement.

The exporting industry, he said, has serious reservations, as the decision of ECC is being implemented from 16th October 2018 instead of 27th September 2018. Also, the captive power of the 5 zero rated sectors are not being provided incentive terms of the decision.

He has urged both Prime Minister Mr Imran Khan, Federal Finance Minister Mr Asad Umar, Advisor on Commerce Mr Razak Dawood and Petroleum & Natural Resources Minister Mr Ghulam Sarwar Khan to intervene immediately and bring an end to the uncertainty prevailing all across five zero sectors.


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