Pakistan Seeks Rs2.52 Per Unit Electricity Price Hike Under July Fuel Cost Adjustment

ISLAMABAD: The Central Power Purchasing Agency (CPPA) has asked the National Electric Power Regulatory Authority (NEPRA) to increase electricity prices by Rs2.52 per unit.

The proposed increase comes under the July 2026 Fuel Charges Adjustment (FCA).

According to NEPRA, the CPPA filed the petition to recover higher fuel costs recorded during July.

NEPRA will hold a public hearing on August 27 to review the request.

LNG Power Costs Rs47.37 Per Unit

The CPPA’s petition shows that imported Liquefied Natural Gas (LNG) played a significant role in July’s electricity generation.

Power plants generated 10.78% of the country’s electricity from LNG during the month.

The generation cost stood at Rs47.37 per unit. The total value of LNG-based electricity reached Rs77.19 billion.

Meanwhile, furnace oil contributed 1.42% to total electricity generation. The fuel cost Rs50.07 per unit.

Furnace oil-based generation amounted to Rs10.77 billion during July.

Hydropower Remains Major Source

Hydropower remained the largest source of electricity in the country’s generation mix.

It accounted for 39.81% of total electricity generation during July.

Local coal contributed another 10.91%, while imported coal accounted for 14.38%.

Nuclear power also made a significant contribution. Nuclear plants generated 10.10% of the country’s electricity.

The fuel cost for nuclear power stood at just Rs3.02 per unit.

Diesel Generation Also Adds to Costs

Power producers also used diesel to generate electricity during July.

According to the CPPA’s petition, diesel plants generated 31 million units of electricity.

However, diesel generation came at a much higher fuel cost of Rs54.47 per unit.

Consumers Could Face Rs41 Billion Burden

If NEPRA approves the proposed adjustment, electricity consumers across Pakistan could face an additional financial burden.

The total impact could reach Rs41 billion, including GST.

NEPRA will consider the CPPA’s request during the August 27 public hearing before deciding on the proposed increase.

The final decision will determine whether consumers have to pay the additional Rs2.52 per unit under the July fuel cost adjustment.

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