KP asks CCI to lift federal gas rate from Rs10 to Rs60
Khyber Pakhtunkhwa has asked the Council of Common Interests to raise federal excise duty on indigenous natural gas from Rs10 to Rs60 per MMBTU, citing the 2010 share formula.
Khyber Pakhtunkhwa has approached the Council of Common Interests seeking a higher federal excise duty on indigenous natural gas.
The province wants the duty raised from Rs10 per MMBTU to Rs60 per MMBTU — a 500 percent increase.
A summary from the former PTI-led KP government says the Rs10 rate was set in the Finance Act 2010 at 2.6% of the then industrial gas tariff.
With the industrial tariff now at Rs2,700 per MMBTU, KP argues the same 2.6% share equals Rs60 per MMBTU.
Constitutional rules would send well-head FED proceeds to the province where the gas is produced; KP also wants future rates linked to the CPI named in its summary.