Key Takeaways
- Power companies have requested a Rs1.20 per unit increase in fuel costs for August.
- The request is primarily due to the use of expensive imported fuels, particularly Regasified Liquefied Natural Gas (RLNG).
- Nepra has called a public hearing on July 29 to examine the request.
Power companies in Pakistan have sought an increase of Rs1.20 per unit in fuel costs for consumers across the country in August, according to Dawn. This move comes despite around 75% of electricity generated in June having been sourced from cheaper domestic sources, with zero fuel costs.
The Central Power Purchasing Agency (CPPA) filed a petition seeking higher fuel cost adjustments (FCA), citing slightly lower power consumption compared to the same period last year. Electricity consumption was recorded at 13,066 million units in June this year, down from 13,310 million units in June 2025.
The increase in fuel costs is primarily driven by a nearly doubled price of Regasified Liquefied Natural Gas (RLNG), which now stands at Rs35 per unit compared to Rs16 per unit last year. The reference fuel cost for June 2026 was set at Rs7.714 per unit, but the actual fuel cost has risen to Rs8.90 per unit.
The CPPA also noted that furnace oil-based plants and diesel contributed less than 1% of the overall grid supply, with their respective costs being Rs52 and about Rs57 per unit. Despite this, these fuels were used in the generation process. The majority of power supply came from hydropower (39%), followed by local coal (10%), local gas (6.5%), nuclear power (13.5%), wind projects (5%), solar (0.82%), and bagasse-based generation (0.35%).
The fuel cost for local coal-based generation was Rs11.5 per unit, compared to Rs16.65 per unit for imported coal. For local gas, the cost was reported at Rs13.7 per unit, while imported RLNG had a higher cost of Rs35.5 per unit. Nuclear power’s fuel cost was reported at Rs2.85 per unit.
Earlier this month, the Oil and Gas Regulatory Authority (Ogra) notified an increase of around 15% in the price of RLNG for sales at the distribution stage by the two Sui gas companies for the current month. This hike is mainly due to purchases from the international spot market amid supply disruptions caused by the US-Iran war.
The National Electric Power Regulatory Authority (Nepra) has called a public hearing on July 29 to examine the request for a fuel cost adjustment. The CPPA stated that the increase in fuel costs was necessary to recover additional charges from consumers through upcoming monthly bills.
