PHC stays recovery of backdated RLNG charges

By Bureau report
|
August 23, 2025
A lawyer walks past in front of the Peshawar High Court building.—AFP/File

PESHAWAR: The Peshawar High Court (PHC) has granted a stay order on a writ petition challenging the imposition of cost actualisation charges on Regasified Liquefied Natural Gas (RLNG) in March 2025 for gas consumed between April 2015 and June 2022.

The petitioner industries contested the retrospective application of these charges by the Oil and Gas Regulatory Authority (OGRA), which were to be recovered from consumers through Sui Northern Gas Pipelines Limited (SNGPL) bills.

Counsels Barrister Ibrahim Khan Afridi and Lawangeen Khan argued that imposing such charges nearly a decade after the consumption period is arbitrary and lacks legal justification.

They contended that the retrospective application of Section 43B—inserted into the OGRA Ordinance, 2002, through an amendment in 2022—for a period prior to its enactment violates the fundamental rights of the petitioners and runs contrary to the legislature’s intent.

After preliminary hearings, a bench comprising Justice Wiqar Ali Khan and Justice Kamran Hayat Miankhel restrained SNGPL from recovering the disputed charges or disconnecting gas supply to the petitioners.

The court issued notices to OGRA, the gas utility, and the Ministry of Energy (Petroleum Division), directing them to submit their responses within a fortnight.

The stay order was issued on Thursday amid growing concerns among industrial stakeholders over rising energy costs and the impact of retrospective billing practices on business planning and competitiveness.