Karachi: The Oil and Gas Regulatory Authority (OGRA) has announced a Rs500/MMBtu increase in the gas tariff for Captive Power Plants (CPPs), setting the new rate at Rs3500/MMBtu. This adjustment aims to align the CPP tariff more closely with Re-gasified Liquefied Natural Gas (RLNG) prices, which have historically shown a significant discrepancy. Tariffs for other gas consumer categories remain unchanged.

According to a statement by JS Global, the revised tariff will narrow the gap between CPP tariffs and RLNG prices to a mere US$0.12/MMBtu, a considerable reduction from an average disparity of over US$6.5/MMBtu observed over the past three years. This realignment meets the International Monetary Fund's (IMF) recent guidelines on tariff alignment.

While the earnings impact may be minimal, the change is seen positively for industries such as the Textile sector, which depend on captive plants. The adjustment is expected to mitigate risks related to earnings outlooks by offering clearer insights into fuel and power pricing and supply.