SHC's stay order halts industry gas price hike

December 20, 2023 (MLN): The honourable Sindh High Court (SHC) on Tuesday issued a stay order, halting the hike in gas prices for the industry. 

Accordingly, SSGC is asked to issue monthly gas bills to plaintiffs (textile manufacturers) at the rate prevailing before the issuance of the impugned notification. 

The court order granted relief to the plaintiffs (textile manufacturers) by temporarily suspending the implementation of the contentious notification for them, provided they deposited a specific differential amount with the court's Nazir within seven days.

Additionally, the order outlined that failure to make payments for two consecutive months would result in the suspension of the interim order for the plaintiff failing to comply.

It also mentioned that any payments made to Nazir would be subject to the outcome of the injunction application.

The industrialists are instructed to pay their monthly bills regularly, with a clear instruction for the defendant-SSGC to issue separate bills or specify amounts in a manner that distinguishes the differential amount to be deposited with the Nazir and paid directly to the defendants.

"It is inter alia contended that plaintiffs being textile manufacturers utilizing natural gas as industrial consumers supplied by SSGC; that impugned notification dated November 08, 2023, was issued by defendants in contravention of section 8 of the OGRA Ordinance 2002 read with Rule 18 of the Natural Gas Tariff Rules 2002 whereby sale price has been exorbitantly increased for the plaintiffs which is illegal and in contravention of OGRA Ordinance 2002 and Rules of 2002," the order reads.

Hence gas bills being issued based on that notification are with increased sale price also illegal, it added.

The caretaker government has decided concerning the fixation of the aforesaid exorbitant sale price in violation of the powers.

Section 230 of Election Act 2017; he has prayed for suspension of Notification dated November 08, 2023, to the extent of plaintiffs and further for suspension of any increased sale price as reflected in gas bills issued to plaintiffs.

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