Govt Seeks Diesel for Punjab RLNG Power Plant

The Punjab government is seeking diesel supplies for its 1,180 MW Bhikki power plant, with electricity generated from diesel potentially costing approximately Rs. 74 per unit at today's price. Quaid-e-Azam Thermal Power (Private) Limited (QATPL), the Punjab government-owned entity operating the plant in Sheikhupura, has issued a tender notice inviting oil marketing companies to prequalify for diesel supply.

The supply contract is for three years, with annual performance reviews, and diesel will be supplied as needed. Applications must be submitted via the Punjab e-Procurement System by 11:00 AM on November 24, 2026. Diesel currently costs Rs. 395.20 per litre, down from Rs. 402.96 and reaching Rs. 401 last week. At this rate, the estimated fuel cost for each unit of power generated from diesel is around Rs.

74, which is significantly more expensive than gas-based power. According to CPPA-G's fuel data for September 2026, electricity generated from diesel cost Rs. 62.14 per unit in fuel alone, compared to Rs. 39.74 for power generated from re-gasified liquefied natural gas (RLNG). As fuel costs are passed on to consumers through monthly fuel charge adjustments, the higher cost of diesel power on the grid puts additional pressure on electricity bills.

The Bhikki plant commenced commercial operations in May 2018, and QATPL claims it is one of the most efficient plants in the country, with an efficiency of over 61% when running on RLNG.