PHC suspends gas tariff hike for industrial consumers

PESHAWAR: The Peshawar High Court (PHC) on Monday suspended the notification regarding the increase in natural gas tariffs for industrial consumers in Khyber Pakhtunkhwa, ordering the industries to continue payments at the previous rates.

A two-member bench comprising Justice Wiqar Ahmad and Justice Sabitullah heard the petition which was filed by Lucky Cement, Cherat Cement, and other industrial units.During the proceedings, Sui Northern Gas Pipelines Limited (SNGPL) was represented by Advocate Asad Jan, while Assistant Attorney General Rahat Ali Nahqi appeared on behalf of the federal government.

The petitioners’ counsel, Advocate Shumail Butt, informed the court that the Oil and Gas Regulatory Authority (Ogra) had issued a notification on January 26, 2025, raising gas prices for industrial consumers from Rs3,000 to Rs3,500 per MMBTU.

He argued that Ogra had initially recommended a tariff of Rs1,772 per MMBTU for SNGPL’s industrial consumers. However, the federal government imposed a significantly higher rate, which disproportionately affected industries in Khyber Pakh­­tunkhwa, pushing them toward financial distress.

Advocate Shumail Butt contended that under Article 158 of the Constitution, industries in Khyber Pakhtunkhwa should receive gas at the same rates as those in other provinces. He alleged that the federal government was deliberately restricting gas supply to the industries in Khyber Pak­h­­tunkhwa.

He also pointed out that in November last year, the Peshawar High Court had previously suspended a similar tariff hike.After hearing the initial arguments, the court issued an interim stay order, instructing industries to continue payments at the previous rates. The court also sought responses from the concerned parties.