PHC stays RLNG levy

Bureau report

PESHAWAR: A division bench of Peshawar High Court (PHC) on Friday issued a stay order against the levy of Re-gasified Liquefied Natural Gas (RLNG) on industrial and commercial consumers imposed by Sui Northern Gas Pipelines Limited in the province. A two-member bench comprising Justice Waqar Ahmad Seth and Justice Musarrat Hilali issued the stay order. Sarhad Chamber of Commerce and Industry had challenged the RLNG surcharge.

During arguments, counsel for the petitioners industries, submitted that the SNGPL had started receiving RLNG surcharge from the month of March in electricity bills of industrial and commercial consumers. He argued the notification is in violation of Article 158 of Constitution which provides that a province in which a well-head of natural gas is situated shall have precedence over other parts of Pakistan in meeting the requirements from that well-head, subject to the commitments and obligations as on the commencing day. The counsel contended that the levy cannot be applicable to consumers in KP as the province is producing more gas than its consumptions. He added KP has own gas and it doesn't need RLNG for industries.