Electricity consumers in Pakistan could face another increase in power bills as distribution companies seek an additional Rs2.56 per unit fuel cost adjustment.
The proposed increase aims to recover approximately Rs33 billion in additional electricity generation expenses for September 2026.
During a public hearing on October 29, industrial representatives and the Power Division demanded lower petroleum levies to reduce electricity costs.
NEPRA Reviews Rs2.56 Per Unit Electricity Increase
The Central Power Purchasing Agency (CPPA) requested approval from the National Electric Power Regulatory Authority (NEPRA) to recover Rs32.76 billion through November electricity bills.
Officials revealed that September’s actual fuel cost reached Rs10.022 per unit, compared with the reference rate of Rs7.46.
However, the net increase could remain around Rs1.45 per unit because the previous adjustment will expire.
Industry Demands Reduction in Petroleum Levies
Business representatives criticized heavy taxes on furnace oil and diesel used for electricity generation.
They highlighted petroleum levies of approximately Rs76,000 per tonne on furnace oil and Rs80 per litre on diesel.
According to industrial representatives, removing these charges could reduce generation costs from approximately Rs62 to Rs44–50 per unit.
Expensive Fuel Drives Pakistan’s Power Costs Higher
Officials confirmed that reduced liquefied natural gas supplies forced greater reliance on expensive alternative fuels.
Diesel and furnace oil accounted for approximately 3.6% of September’s electricity generation.
Average fuel costs increased nearly 37.5% compared with September 2025.
Meanwhile, NEPRA questioned discrepancies in submitted generation data and raised concerns about coal procurement practices.
The regulator has yet to approve the proposed adjustment.
Its decision will determine the additional burden facing electricity consumers in November.
