APTMA urges scrap levy as electricity cost for industry may reach Rs75pu

All Pakistan Textile Mills Association (APTMA) demanded the government to withdraw Rs80,000 per ton levy imposed on furnace oil otherwise the cost of electricity for industry is likely to reach Rs75 per unit, reported 24News HD TV Channel on Wednesday.
In a letter addressed to Petroleum Minister Ali Pervaiz Malik, APTMA Chairman Kamran Arshad stated that a levy of Rs80,000 per ton on furnace oil priced at around Rs330,000 per ton has significantly inflated energy costs, raising electricity tariffs for captive power generation to approximately Rs75 per unit, more than double the benchmark grid tariff of Rs32 per unit.
APTMA further stated that the industrial sector is currently facing load shedding, while alternative backup energy sources are becoming increasingly expensive. 
He noted that Pakistan’s constructive role at a time of heightened global uncertainty has enhanced its international standing.
Despite improved global perception, the domestic policy framework continues to constrain competitiveness, with the cost of doing business reaching unsustainable levels.
The association stated that this disparity places Pakistani manufacturers at a severe disadvantage compared to regional competitors. 
It argued that the furnace oil levy lacks economic justification, particularly as there is no clear linkage between energy prices and the methodology used to calculate the levy on high-speed furnace oil, which is primarily used as a backup energy source.
Kamran Arshad noted that in the current scenario—where load shedding is already affecting industrial output such policies not only increase input costs but also undermine productivity and export potential. 
APTMA called for an urgent review and rationalisation of the captive power levy mechanism, stating that the current structure has had adverse effects across the board and has failed to deliver intended outcomes. It emphasised that the immediate removal of the levy would ensure fairness and prevent undue financial burden on efficient industrial units.
“I urge you to review these redundant and counterproductive measures, particularly the furnace oil levy and the prevailing fuel cost structure, so that our industry can operate on a level playing field,” Arshad said.
Reporter: Ashraf Khan