Gas Tariff
KARACHI: The Sindh High Court (SHC) took a significant step on Thursday by suspending the gas tariff hike notification affecting the textile industry. This move comes in response to a notification from the Oil and Gas Regulatory Authority (OGRA) announcing an increase in gas tariffs for the textile sector.
The SHC order delivered a reprieve to the plaintiffs, primarily textile manufacturers, by temporarily halting the implementation of the contentious notification. However, this relief was contingent upon the plaintiffs depositing a specific differential amount with the court’s Nazir within seven days. As a result of the order, the Sui Southern Gas Company (SSGC) is instructed to issue monthly gas bills to the plaintiffs at the rates prevailing before the contested notification.
The court order specified that failure to make payments for two consecutive months would lead to the suspension of the interim order for the non-compliant plaintiff. Furthermore, it outlined that any payments made to the Nazir would be subject to the final outcome of the injunction application.
Industrialists are now mandated to make regular monthly bill payments, with a clear directive for 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. This nuanced approach aims to ensure clarity in financial transactions and adherence to the court’s directives.
The SHC’s intervention provides a temporary relief mechanism for the textile industry, allowing for legal considerations and discussions surrounding the gas tariff hike. This decision underscores the court’s role in safeguarding the interests of the industry while maintaining a framework for transparent and accountable financial transactions.
