Industry warns fuel levies add about Rs10 a unit to power
At a Nepra hearing, manufacturers and the power division urged cuts to levies on furnace oil and diesel as CPPA sought a Rs2.56 per unit fuel cost adjustment for September.
Manufacturers and the power division jointly called for removing or cutting the petroleum levy on furnace oil and diesel used for power generation.
They said the levies add roughly Rs10 per unit to electricity costs; furnace oil levy is about Rs76,000 per tonne and diesel about Rs80 per litre.
CPPA asked Nepra for a Rs2.56 per unit additional fuel cost adjustment for September to recover about Rs33 billion, for November bills.
CPPA said the net FCA rise for consumers should not exceed Rs1.45 per unit once October’s positive adjustment expires.
Oil- and diesel-based plants supplied 3.6% of September generation after LNG and other cheaper fuels were scarce.