LAHORE: The Pakistan Steel Melters Association (PSMA) has expressed significant concern regarding the recent surge in electricity rates, along with a charge of Rs4.56 per unit attributed to Fuel Charge Adjustment for December 2023. This development poses an additional strain on the Steel Melting Industry, which consists of over 200 registered steel melters affiliated with PSMA, making it one of Pakistan’s largest electricity-consuming industries that utilize electricity as a primary raw material.
According to the spokesperson of the association, the substantial increase in electricity charges presents a formidable challenge for the steel melting sector, with many furnaces contemplating closure and forced business sales in the near future to meet their monthly electricity obligations.
Highlighting a critical issue, industry representatives emphasized the impossibility of incorporating the levied Fuel Adjustment Charges into product costs once goods are sold, resulting in an outright loss for the industry.
In an attempt to find a mutually beneficial resolution, PSMA has recommended the timely billing of adjustment charges without prolonged delays, enabling their incorporation into product pricing.
Copyright Business Recorder, 2024
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