Pakistan’s Power Division says it reduced the potential impact of September’s electricity price adjustment through targeted measures. These steps helped limit the expected increase to Rs. 2.56 per unit.
According to the division, consumers could have faced an adjustment of Rs. 5 to Rs. 6 per unit. However, load management and lower-cost fuel arrangements helped prevent an additional burden of up to Rs. 3.44 per unit.
The total financial impact of September’s fuel price adjustment is estimated at Rs. 32.7 billion. The adjustment reflects changes in fuel costs used for electricity generation.
The Power Division said authorities took several steps during September to control generation expenses. These measures aimed to reduce reliance on expensive fuels and limit the increase passed on to consumers.
Limited Load Management Helped Control Electricity Costs
Authorities carried out limited load management for approximately two to two-and-a-half hours during September. This reduced the need to generate electricity using expensive furnace oil and high-speed diesel.
The Power Division said these measures helped lower the overall cost of power generation. Expensive fuels can increase electricity production expenses when cheaper alternatives are unavailable.
The government also supplied imported liquefied natural gas (LNG) for power generation at domestic gas rates. According to the division, this arrangement reduced costs by Rs. 0.83 per unit.
Despite these steps, September’s fuel price adjustment is expected to be Rs. 1.45 per unit higher than August’s adjustment.
Rising Global Oil Prices Put Pressure on Tariffs
The Power Division attributed higher electricity generation costs to rising international oil prices. Global oil prices crossed $120 per barrel amid a regional dispute, according to the statement.
Crude oil was estimated at around $70 per barrel when the existing base electricity tariff was determined. The difference has increased pressure on power generation costs.
Pakistan is also working to maintain supplies of re-gasified liquefied natural gas (RLNG). The country has continued pursuing available contractual supplies and additional spot cargoes.
These efforts are continuing despite Qatar declaring force majeure. The Power Division warned that further RLNG shortages could increase dependence on expensive furnace oil and high-speed diesel.
Greater reliance on these fuels could raise electricity generation costs. This could place additional pressure on future fuel price adjustments for consumers.
Electricity Tariff Adjustments During 2026
The Power Division also provided details about the combined impact of fuel price and quarterly tariff adjustments. From January to August 2026, these adjustments limited the additional burden to Rs. 0.65 per unit.
According to the division, this represented a 1.9 percent increase over the base electricity tariff during that period.
The government has also introduced a package encouraging industrial and agricultural consumers to use additional electricity from the national grid. The initiative aims to increase grid consumption among these users.
Higher consumption by industrial and agricultural sectors could help improve the utilisation of the existing power system. However, future electricity costs will continue to depend partly on fuel prices and available supplies.
In other related news also read Pakistan Receives First LNG Cargo for October
The Power Division says its September measures helped prevent a larger increase in consumer bills. Further changes will depend on fuel costs, LNG availability, and other factors affecting electricity generation.
