The Petroleum Division has set a new levy of Rs. 1,243 per mmbtu on gas consumption by off-grid captive power plants for December 2025, as part of its ongoing energy sector reforms.
The levy has been notified under the Off-grid Captive Power Plants Levy Act 2025 and will be charged under Section 3 of the law, which was passed earlier this year.
The move marks a significant increase compared to the earlier levy of Rs. 690 per mmbtu for August 2025, reflecting a phased upward adjustment under the policy.
Under the framework, the levy is being increased progressively, starting at 5 percent over industrial tariffs and moving to 10 percent from August 2025, 15 percent from February 2026, and reaching 20 percent from August 2026.
The government aims to generate around Rs. 105 billion in revenue from this levy during the fiscal year 2025 to 2026.
The proceeds will be used to reduce electricity tariffs for consumers across the country, except for lifeline users.
Earlier in 2025, the levy rates were set at Rs. 570 per mmbtu in April, Rs. 550 in May, and Rs. 402 in June, indicating a steady increase over time as part of the government’s pricing strategy.