The Islamabad High Court (IHC) has put a hold on a levy applied to natural gas and RLNG used by captive power plants (CPPs), blocking its enforcement until April 30, 2025. This levy was introduced under Section 3(1) of the Off the Grid (Captive Power Plants) Levy Ordinance, 2025.
Justice Khadim Hussain Soomro made the ruling after listening to the petitioners’ arguments, deciding that the issue needs more discussion. The court sent notices to the respondents and scheduled the next hearing for April 30.
The challenge came from a private company that generates its own electricity with natural gas or LNG and also supplies third parties. Represented by senior lawyer Makhdoom Ali Khan, they claimed the levy, announced by the Ministry of Energy on March 7, 2025, was illegal and asked the court to stop its collection.
The respondents named in the case are the Secretary of the Ministry of Energy (Petroleum Division), the Director General of the Oil and Gas Regulatory Authority (OGRA), and the heads of Sui Southern Gas Company Limited, Sui Northern Gas Pipelines Limited, and Punjab Industrial Estate Development and Management Company.
The petitioners argued that OGRA, under the 2002 Oil and Gas Regulatory Authority Ordinance, sets gas prices, and this levy adds an extra fee beyond the official rate. The IHC’s suspension offers temporary relief to industries relying on captive power plants while the legal fight goes on
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