The Islamabad High Court (IHC) has suspended the enforcement of a levy on natural gas and RLNG consumption by captive power plants (CPPs) until April 30, 2025. The levy was imposed under Section 3(1) of the Off the Grid (Captive Power Plants) Levy Ordinance, 2025.
Justice Khadim Hussain Soomro, presiding over the case, issued the suspension order after hearing arguments from the petitioners’ counsel. The court acknowledged that the matter required further deliberation and issued notices to the respondents for the next hearing on April 30.
The petitioners, a private company generating electricity using natural gas or LNG for its own use and third-party supply, challenged the levy through senior counsel Makhdoom Ali Khan. They argued that the notification issued by the Ministry of Energy on March 7, 2025, was unconstitutional and sought to bar authorities from enforcing or recovering the levy.
Respondents in the case include the Secretary of the Ministry of Energy (Petroleum Division), the Director General of the Oil and Gas Regulatory Authority (OGRA), and CEOs of Sui Southern Gas Company Limited, Sui Northern Gas Pipelines Limited, and Punjab Industrial Estate Development and Management Company.
The petitioners contended that OGRA, under the Oil and Gas Regulatory Authority Ordinance, 2002, is responsible for determining and notifying gas prices, and the levy was an additional charge beyond the notified tariff. The court’s decision provides temporary relief to industries using captive power plants while the legal challenge continues.