Energy Minister Awais Leghari says greater use of domestic energy resources and additional local gas helped contain August’s fuel cost adjustment.
ISLAMABAD, September 15, 2026: Federal Minister for Energy Sardar Awais Ahmad Khan Leghari has said timely decisions by the Power Division helped keep the Fuel Cost Adjustment (FCA) for August 2026 at around Rs1.73 per unit, compared with Rs2.0851 per unit in the previous month.
According to the minister, the measures prevented an additional burden of approximately Rs10.6 billion on electricity consumers while also helping conserve valuable foreign exchange amid rising international fuel prices.
In a press release, Leghari said global fuel markets were facing pressure due to the situation in the Strait of Hormuz, making effective fuel management particularly important.
He credited electricity consumers for cooperating with the government and accepting a few hours of load management during nighttime hours to support efforts to reduce fuel costs.
“I sincerely thank the people for supporting the government in reducing electricity prices, particularly at a time when fuel prices are rising globally and international fuel markets are facing severe pressure due to the situation in the Strait of Hormuz,” the minister said.
Domestic resources reduce fuel costs
Leghari said a key factor behind the lower FCA was the maximum utilisation of domestic energy resources for electricity generation.
During August 2026, around 72 per cent of total electricity generation came from domestic resources.
Hydropower accounted for 38 per cent, followed by local coal at 11 per cent, nuclear power at 10 per cent, local gas at 7 per cent, wind at 6 per cent and solar energy at 1 per cent.
The remaining 28 per cent of electricity generation came from imported coal and re-gasified liquefied natural gas (RLNG).
The minister said disruptions in RLNG supplies had pushed spot cargo prices to around $23-$25 per MMBtu, describing the rates as exceptionally high.
Additional domestic gas helps avoid expensive RLNG
Leghari said that, on the prime minister’s directions, the Power Division remained in close coordination with the Petroleum Division and the National Crisis Management Cell (NCMC) to arrange additional domestic gas for the power sector.
The availability of domestic gas enabled power producers to avoid purchasing expensive RLNG during a period of exceptionally high international prices.
According to the minister, without the additional domestic gas, the power sector would have faced another hour of load-shedding.
He added that generating electricity through furnace oil or imported RLNG would have increased electricity tariffs for consumers by approximately Rs10.6 billion.
Leghari said timely decisions, coordinated efforts and effective fuel portfolio management helped prevent the additional burden and contributed to the lower FCA recorded for August 2026.
The minister said the government would continue pursuing measures aimed at providing maximum possible relief to electricity consumers through its public-focused energy policies.