Off-grid captive power levy drops to Rs343 per MMBTU for August
A revised formula agreed with the IMF cuts the captive power levy down to Rs343 per MMBTU, reducing projected tariff relief for grid electricity users.
The petroleum ministry cut the captive power plant levy to Rs343 per MMBTU for August, a 76% decrease from January's peak of Rs1,406.
The reduction follows a formula change agreed with the IMF that uses the average of peak and off-peak B3 industrial tariffs instead of peak-only rates.
Lower levy receipts will shrink the planned Re0.90 per unit electricity tariff subsidy previously promised to national grid consumers.
The government had targeted Rs105 billion in revenue for FY2025-26, but collections fell short due to court disputes and dropping industrial gas use.