SHC temporarily suspends gas tariff hike for textile industry

SSGC raised tariff for natural gas supplied to textile industry on Nov 8, 2023

KARACHI:

The Sindh High Court (SHC) has temporarily suspended a notification issued by the Sui Southern Gas Company (SSGC) regarding last month's hike in gas tariffs while issuing notices to the federal government and other concerned parties on a petition challenging the increase in gas price for the textile industry.

Appearing before an SHC bench, the petitioner's counsel argued that the SSGC raised the tariff for the natural gas supplied to the textile industry on November 8, 2023. The caretaker government does not have the mandate to enforce such increases in gas price, as per the counsel.

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The court temporarily suspended the notification issued by the SSGC regarding the hike in gas prices, clarifying that the suspension would only apply to the petitioners. The bench directed the textile industry to submit the additional bills to the naazir (court official). The injunction applies to those industries that deposit the increased amount within seven days with the naazir.

Failure to submit the additional amount within the stipulated time will result in the lapse of the injunction. The deposited amount will remain with the naazir until the applications are decided. Applicants are required to continue paying regular bills according to the existing tariff before the gas price increase.

The court issued notices to other concerned parties, including the federal government, summoning their response at the next hearing.

Published in The Express Tribune, December 22^nd, 2023.