Gas Price Hike – SSGC – Interim Stay allowed by the Sindh High Court

Industires in Sindh have challenged the legality of exorbitant increase in Gas prices by SSGC, before the Sindh High Court.

Amongst many arguments taken up by Plaintiffs, following are the major legal issues:

1. The caretaker government has taken decision to increase Gas prices in violation of Section 230 of the Election Act, 2017;

2. SSGC submitted its annual revenue requirement for 2023-24 to OGRA on 10-01-2023. Thereby OGRA, on 02-06-2023 submitted its recommendation to the Federal Government for determination of sales price, wherein average prescribed price per MMBTU of Rs. 1350.69 was suggested. Federal Government was bound to notify these prices [or any amendments thereon] within 40 days, however, prices were notified by the Federal Government on 08-11-2023 i.e. after 153 days instead of 40 days. Consequently, as per section 8 of the OGRA Ordinance, price of Rs. 1350.69 per MMBTU should have been treated as the notified prices. 

On the basis of above and other detailed arguments, the Sindh High Court has allowed interim stay to Plaintiffs against the increase Gas rates subject to deposit of differential amount with Nazir of the High Court.