SHC stays govt’s gas tariff hike order

Directs federation, OGRA and SSGC to submit written arguments till March 14

KARACHI:

The provincial high court in Sindh has stayed the federal government’s decision to increase gas prices for industrial units. It has also ordered the federation, the Oil and Gas Regulatory Authority (Ogra) and the Sui Southern Gas Company (SSGC) to submit written arguments in support of the hike.

The hearing of petitions filed by over 400 companies against the caretaker government’s notifications to increase gas tariffs for industries resumed before a single-member bench of Justice Mahmood A Khan on Thursday.

The petitioners' lawyer argued that according to the law, the province which produces a resource has the primary right to use it. He said Sindh produces the most gas in the country.

He noted that the caretaker government was not entitled to increase gas prices. “A caretaker government is supposed to handle day-to-day affairs. It cannot make decisions on major policy matters.”

The federal government’s counsel stated that the caretaker government increased gas prices to boost revenue in compliance with a condition of the International Monetary Fund (IMF).

Justice Khan inquired from the counsel as to what was the agreement between the government and the IMF. He noted that the copy presented in court was not an agreement but a press release issued by the Fund.

“According to the press release, the IMF’s condition was related just to increase in revenue, and it was the caretaker government's own recommendation to raise gas prices and taxes," he said.

Read also: ‘Govt must reconsider gas tariff hike’

Ogra’s lawyer argued that the petitioners were part of the decision-making process for the price hike while half of them were part of the government and were aware of the situation.

“The court does not have the authority to intervene in policy matters,” he contended.

The judge remarked that these are old discussions and that the court will act according to the law.

Later, the SHC suspended the federal government’s notifications of November 8 and December 14, 2023 regarding increases in gas prices for industries.

The court also directed companies to deposit the additional amount with the court’s nazir while rejecting the federal government’s request for allowing it to collect the money.

It also ordered the federal government, OGRA, SSGC, and others to provide written arguments by March 14. A nazir is court official who serves processes, acts as treasurer, and performs other similar duties.