Power Division says measures cap September fuel adjustment at Rs2.56 per unit

ISLAMABAD: The Power Division on Thursday said targeted measures, including limited load management and the use of domestic gas, had helped restrict the projected fuel price adjustment for electricity consumed in September to Rs2.56 per unit, from an anticipated Rs5 to Rs6 per unit.

In a statement, the division said the measures had saved consumers from a potential additional burden of up to Rs3.44 per unit. It estimated the total impact of September’s fuel price adjustment at Rs32.7 billion.

The division said it had resorted to targeted load management lasting two to two-and-a-half hours a day in September to reduce reliance on expensive alternative fuels, particularly furnace oil and high-speed diesel.

It said the adjustment could have risen substantially because of the cost of generating electricity using these fuels amid elevated international oil prices.

Another measure involved supplying imported liquefied natural gas (LNG) to power plants at domestic gas rates, which the division said reduced the burden on consumers by 83 paisa per unit.

The projected September adjustment is now expected to be Rs1.45 per unit higher than the adjustment for August, according to the statement.

Global fuel prices and LNG supplies

The Power Division said crude oil prices in the international market had climbed above $120 per barrel amid a regional conflict, compared with an estimated price of around $70 per barrel when the country’s base electricity tariff was determined.

It said Pakistan had continued efforts to meet its re-gasified liquefied natural gas (RLNG) requirements through available contractual supplies and additional spot-market cargoes despite Qatar declaring force majeure.

The division said RLNG would remain necessary to maintain stability in the power system. A further reduction in supplies could increase reliance on more expensive furnace oil and high-speed diesel, potentially pushing up electricity generation costs.

Consumers’ additional burden

The Power Division said the combined impact of monthly fuel price adjustments and quarterly tariff adjustments from January to August 2026 had limited the additional burden on consumers to 65 paisa per unit.

It said this was equivalent to an increase of only 1.9 per cent in the base electricity tariff over the period.

The division also said a package encouraging additional electricity consumption by industrial and agricultural users had helped promote the use of power from the national grid.

The claims come as fuel price adjustments and quarterly tariff revisions continue to affect electricity bills. In September, the National Electric Power Regulatory Authority (NEPRA) notified a fuel cost adjustment of about Rs2.06 per unit for electricity consumed in July, alongside a quarterly adjustment of about 52 paisa per unit. The two charges together added approximately Rs2.58 per unit to bills for eligible consumers.