PHMA letter to Asad Umar: Minister's intervention sought for withdrawal of gas price hike

Pakistan Hosiery Manufacturers and Exporters Association (PHMA) chairman Muhammad Javed Bilwani has asked Finance Minister Asad Umar to ensure withdrawal of increase in gas bill of textile industry. He made this demand in a letter he has sent to Federal Finance Minister Asad Umar and a copy of it was also provided to Business Recorder on Saturday.
"Scores of the association's members have complained about the increased gas utility tariffs. Normal gas utility tariff is Rs 600 for each MMBTU gas consumption that the industries receive and pay under the zero-rated arrangement," he said, adding that hike in gas price has shocked everyone in the sector.
The government used to bill the industry under a single category and its gas tariff was Rs 600 per MMBTU, monthly. Later, it categorized the industrial gas consumers into two categories, including general and five zero-rated export sectors with two different tariff slabs.
The government revised its Gas Allocation and Management Policy to prioritize gas utility allocation that brought down the zero-rated sectors into second priority category. "Tariffs for Registered Manufacturers or Exporters of five zero-rated sectors and their Captive Power namely: Textile (including jute), carpets, leather, sports and surgical goods have been fixed as Sales Price: All off-takes at flat rate of Rs 600 MMBTU that also include GIDC after revision of Gas Tariff, the tariff slab of General Industry has been revised to Rs 780 excluding GIDC," according to the letter.
The PHMA also raised question over the mechanism of refund of Rs 280 to zero-rated export sectors that is being charged for the gas consumption. "Since the FBR portal contains details of exporters, including NTN, STRN etc, and is refunding the sales tax in such cases to the zero-rated export industries. Meaning thereby, the export industries may get the refund; however, in the case of gas tariff of Rs 780, additional Rs 100 is imposed as GIDC soaring it to Rs 880 per MMBTU monthly bill for five-zero rated export industries instead of applicable tariff that is Rs 600. How Rs 280 could be refunded," it asked.