Karachi: Sindh High Court (SHC) while accepting petitions against the captive tariff imposed by Sui Southern Company (SSC) on industries has declared imposition of captive tariff unconstitutional.

The petitioners took the plea in the petitions Sui Southern Gas Company imposed captive tariff on the industries in February 2025. Due to it the cost of production rose remarkably in industrial sector and the industries faced immense financial difficulties.

SHC ordered during the hearing of the case the amount received from the industries under head of captive tariff so far be adjusted in next gas bills.

The court maintained in its decision that imposition of captive tariff on industries runs contrary to law and constitution.

The petitioners had taken the plea the industrial activities are being affected due to imposition of captive tariff. It is feared that increase in cost of production may leave negative impact on exports and employment.