Power Division Says It Saved Nation From High Electricity Bills

Pakistan's Power Division asserts it successfully protected electricity users from a potential fuel price hike in September, limiting the increase to just Rs. 2.56 per unit instead of the feared Rs. 5 to Rs. 6. The division credits targeted load management and cheaper fuel arrangements for preventing an additional cost of up to Rs.

3.44 per unit. The total impact of September's fuel price change is projected at Rs. 32.7 billion. To mitigate expensive furnace oil and high-speed diesel usage, the division conducted limited load management for roughly two to two-and-a-half hours each day in September. The government also sourced imported liquefied natural gas (LNG) for power generation at local gas rates, cutting costs by Rs.

0.83 per unit, according to the division. September's fuel price change is anticipated to be Rs. 1.45 per unit higher than August's. The rising global oil prices, which surpassed $120 per barrel due to a regional dispute, contributed to the pressure on electricity generation costs. Pakistan has been actively seeking re-gasified liquefied natural gas (RLNG) through available contracts and extra spot deliveries, even after Qatar declared force majeure.

The division warns that further RLNG shortages could force power producers to rely more on expensive furnace oil and high-speed diesel, raising generation expenses. Despite these challenges, the combined effect of fuel price and quarterly tariff adjustments from January to August 2026 kept the extra burden on consumers at Rs. 0.65 per unit, or a 1.9 percent rise over the base electricity tariff during the period.

The division also highlights a program that incentivized increased electricity usage by industrial and agricultural sectors, resulting in higher power consumption from the national grid.