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Petroleum division directs companies to pay GIDC dues in 24 months

Petroleum division directs companies to pay GIDC dues in 24 months

ISLAMABAD: The Ministry of Energy (Petroleum Division) has directed Sui Southern Gas Company (SSGC), Sui Northern Gas Company (SNGPL), Pakistan Petroleum Limited (PPL), Oil & Gas Development Company (ODGCL), and Mari Petroleum Company Limited (MPCL) to initiate the recovery of arrear amounts accrued up to 31st July 2020 in 24 installments, in a letter dated August 19, 2020, according to media reports.

The development comes after the Supreme Court of Pakistan (SC) last week announced a landmark verdict, as the court-ordered companies pay Rs417 billion in the Gas Infrastructure Development Cess (GIDC) case.

As per the SC verdict, fertilizer sector (old plants) are to pay Rs 80.426 billion, fertilizer feed (new) Rs67 billion, fertilizer fuel Rs16.566 billion, general industry Rs46.327 billion, IPPs Rs 9.132 billion, K-Electric Rs36.509 billion, GENCO/WAPDA Rs22.563 billion, captive power Rs101.725 billion, CNG Region-I Rs41.655 billion and CNG Region-II Rs35 billion. These sectors collected Rs295.4 billion during the last ten years whereas the outstanding amount against them is Rs456.946 billion. The accrued amount of GIDC is Rs752.349 billion.

The letter statement said, “There will be no LPS on the arrear amounts except where the consumer defaults in a payment of installment. Further the gas bills for the month of August 2020 and onwards will not include or reflect GIDC rates and will remain unbilled till further orders”.

GIDC was imposed by the government in December, 2011 to raise funds for the development of gas infrastructure in the country. According to the GIDC Act, the collected amount shall be utilized by the Federal government for Iran Pakistan (IP) gas pipeline, Turkmenistan-Afghanistan-Pakistan-India (TAPI), LNG, and other ancillary projects.