Govt begins collecting Rs523.60 billion Gas Infrastructure Development Cess

| SSGCL to collect Rs226.47b, SNGPL Rs150.71b, PPL Rs10.24b, OGDCL Rs6.84b and Mari Gas Company Limited Rs129.31b

Islamabad-The government has started the collection of Gas Infrastructure Development Cess (GIDC) and first instalment of the cess from Industrial and commercial consumers will be completed in September. 
According to documents, various sectors including fertilizer companies, government power companies, IPPs, K-Electric, generals industry, gas companies owes Rs523.60 billion in lieu of Gas Infrastructure Development Cess and the government will collect the amount in 24 instalments. The collection of first instalment will be completed in September 2020 and this amount will be used in the development of gas infrastructure projects in the country, said a spokesman of the Petroleum Division here. As of June 30, 2020, the total GIDC has reached to Rs523.60 billion and as per the Supreme Court directive the petroleum division had already issued instructions to gas suppliers to collect the GIDC arrears.
Following the Supreme Court of Pakistan decisions to collect GIDC from various sectors the petroleum division had directed various gas suppliers to collect the arrears from the fertilizer Industry, GENCOs, IPPs, generals industry, CNG sector, K-Electric. These sectors started collection of GIDC from their consumers in 2012 but were not deposited to the national exchequer and even after the Supreme Court’s decision some consumers are trying to delay the payments using various pretexts. 
The suppliers of the gas includes Sui Southern Gas Company Limited, Sui Northern Gas Pipelines Limited, Pakistan Petroleum Limited, OGDCL House, Mari Gas Company Limited. The petroleum division asked the gas provider to recover the arrear amounts accrued up to 31st July 2020 in 24 instalments from all defaulting consumers. The Supreme Court had also set the deadline for starting the collection of the GIDC arrears from August 1. There will be no LPS on the arrear amounts except where the consumer defaults in a payment of instalment. 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.  As per the documents, Sui Southern Gas Company Limited will collect Rs226.47 billion, Sui Northern Gas Pipelines Limited Rs150.71 billion, Pakistan Petroleum Limited Rs10.24 billion, OGDCL Rs6.84 billion and Mari Gas Company Limited Rs129.31 billion.
The Fertilizer industry owes the highest amount of Rs195.93 , Industries Rs50.54 billion, IPPs Rs10.54 billion, KE Rs40 .33 billion, Gencos Rs 27.70 billion, CNG sector Rs83 billion, FFC feed Rs24.82, Captive power Rs116 billion, ENGRO Rs2.47 billion, Textile Rs17 billion,  Foundation Power Company Dharki Rs2.25 billion and Pakistan Steel Mills  Rs2.65 billion. Till June the GIDC arrears was Rs456.94billion but has reached to Rs523.60 billion by the end of June 2020. The GIDC for the month of July 2020 is not yet calculated, the document reveals.a