The government has increased the levy on gas and LNG used by captive power plants to Rs 1,243 per mmBtu.
The levy had been imposed on off-grid captive power under an International Monetary Fund condition. The director general of gas has issued the notification regarding the increase in levy for captive power plants.
The new increased levy will be collected under section 3 of the Levy Act. The rate for captive power plants has been set for December 2025. The Levy Act stipulates the levy rate for the relevant period. The government has targeted revenue of Rs105 billion from this levy during the current year.
For August 2025, the levy rate was fixed at Rs690 per mmBtu, for April at Rs577, for May at Rs550, and for June at Rs402 per mmBtu.
