The Sindh High Court (SHC) has declared the capital tariff imposed on industries by Sui Southern Gas Company (SSGC) unconstitutional.
According to details received on Wednesday, the SHC approved petitions filed against the tariff and ruled that its application violated the constitution. The petitions contended that Sui Southern Gas Company (SSGC) had imposed the capital tariff on industries in February 2025, resulting in a significant increase in production costs and causing severe financial difficulties for industrial units.
During the hearing, the SHC directed that the amounts collected from industries under the capital tariff so far should be adjusted in future gas bills. The court held that the implementation of the capital tariff on industries is contrary to the Constitution and law.
The petitioners representing the industries argued that the imposition of the capital tariff was adversely affecting industrial activity. They warned that rising production costs could negatively impact exports and employment.
