Summary：**Gas levy on CPPs: FCC to resume hearing on 15th – Business Recorder****Introduction** Pakistan’s

**Gas levy on CPPs: FCC to resume hearing on 15th – Business Recorder**

**Introduction**
Pakistan’s energy regulator is set to revisit a contentious proposal that would impose a gas levy on captive power plants (CPPs). The Federal Competition Commission (FCC) announced that hearings on the matter will restart on the 15th of next month, drawing sharp reactions from industry players, policymakers, and consumer advocates. The move comes amid growing pressure to balance fiscal needs with the competitiveness of the nation’s industrial sector.

**Key Developments**
The FCC’s decision to reconvene follows a brief adjournment after initial hearings in March, during which stakeholders raised concerns about the potential impact of the levy on electricity costs for manufacturers. Representatives from the Ministry of Energy, the Oil and Gas Regulatory Authority (OGRA), and several major CPP operators presented conflicting data on how the levy would affect both government revenues and plant operating margins. A recent study by the Pakistan Institute of Development Economics estimated that a levy of Rs. 0.5 per cubic meter could generate roughly Rs. 12 billion annually, but warned that the same measure might increase production costs for textile and steel firms by up to 8 percent.

**Industry Analysis**
Analysts note that the levy sits at the intersection of fiscal policy and industrial competitiveness. On one hand, the government seeks to broaden its tax base amid a widening fiscal deficit; on the other, CPPs provide a critical backup for industries that face frequent gas shortages and load‑shedding. Experts warn that an overly aggressive levy could push firms toward alternative, often more expensive, fuels such as furnace oil or diesel, thereby undermining efforts to reduce the country’s carbon footprint. Conversely, a modest levy paired with targeted subsidies for efficient CPPs could reconcile revenue goals with the need to maintain reliable power supply. The FCC’s upcoming hearing will likely examine these