NEPRA approves Rs 5.72 per unit increase in electricity tariff

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) approved an increase in the basic electricity tariff, raising it by Rs 5.72 per unit for the upcoming fiscal year (FY) 2024-2025 on Friday.

The increase in electricity prices by NEPRA is aimed at alleviating financial strains on the energy sector. This will result in an average rise in the basic electricity tariff from Rs29.78 to R 35.50 per unit.

Read more: Electricity prices slashed by Rs10.69 per unit for industries

The federal cabinet will make the final decision on whether to implement this hike all at once or gradually.

The government, amidst efforts to balance the needs of the energy sector with the imperative of economic growth, has simultaneously announced a reduction in electricity prices for industries and exports by Rs10.69 per unit.

As a result, officials set the new rate at Rs34.99 per unit. The measure is expected to significantly boost industrial development and has the potential to foster job creation and economic expansion.

The government estimated that this initiative will alleviate a financial burden of over Rs200 billion from industries.

Read more: Petrol price reduced by Rs10.20 per litre in Pakistan

Meanwhile, the government also announced big cuts in fuel prices. The government reduced petrol prices by Rs10.20 per litre and diesel by Rs2.33 per litre. This followed the government’s decision on June 1 to decrease petrol by Rs4.74 per litre and diesel by Rs3.86 per litre.

The cuts add up to a total petrol relief of Rs35per litre, a significant effort to ease financial pressure.

The new petrol prices will remain in effect until the end of the month. The global oil prices reflected the current reduction in fuel prices. Brent crude near $82.41 per barrel, down by 0.41 per cent, and West Texas Intermediate (WTI) crude at $78.16 per barrel, down by 0.59 per cent.