Government urged to direct SNGPL to issue revised gas bills

The All Pakistan Textile Mills Association (APTMA) Punjab Chairman Adil Bashir on Monday urged the government to direct the Sui Northern Gas Pipelines Ltd (SNGPL) 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 was addressing a press conference along with Central Chairman APTMA Syed Ali Ahsan.

Adil Bashir demanded that notification for providing electricity at 7.5 cents/kWh should be immediately issued. This will enable the exporting industry to focus on increasing exports and undertaking new investment initiatives, he added.

He also demanded that Finance Minister Asad Umar should issue directions to suspend the payment of bills issued to the industry till resolution of tariff issue. He said the industry was not in a position to pay these bills.

He was of the view that delay in the implementation of energy affordability initiative of the government for revival and growth of the textile industry in Punjab has panicked the industry by and large, 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. He said US$ 6.5/MMBTU is not inclusive of GIDC.

Chairman APTMA Syed Ali Ahsan said that 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.

He also 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.