Pakistan’s September fuel price adjustment is projected to reach Rs2.56 per unit, adding an estimated Rs32.7 billion to electricity bills in November 2026 despite government measures to contain the increase.
ISLAMABAD: Electricity consumers in Pakistan are expected to face an additional financial burden of Rs32.7 billion in November 2026 due to the September Fuel Price Adjustment (FPA), which is projected to increase by Rs1.45 per unit compared with August.
The Ministry of Energy’s Power Division said on Thursday that timely interventions, including targeted load management and the provision of imported re-gasified liquefied natural gas (RLNG) at domestic gas prices, had helped limit the September FPA to Rs2.56 per unit.
According to the division, these measures prevented a potential increase of Rs5 to Rs6 per unit, saving consumers from an additional burden of up to Rs3.44 per unit despite rising international fuel prices and constraints on liquefied natural gas supplies.
The Power Division said targeted load management for approximately two to two-and-a-half hours during September reduced reliance on expensive alternative fuels, including furnace oil and high-speed diesel, helping contain the increase in power generation costs.
The provision of imported RLNG for electricity generation at domestic gas prices provided further relief of 83 paisa per unit, it added.
International fuel prices drive electricity costs
The Power Division said international fuel prices had risen sharply amid regional conflict and disruptions to energy supply chains following the closure of the Strait of Hormuz.
Brent crude oil prices had surged above $120 per barrel, compared with the benchmark of approximately $70 per barrel assumed when the base electricity tariff was determined.
The increase in international prices, combined with constraints on LNG supplies, placed additional pressure on power generation costs and increased the potential fuel adjustment for electricity consumers.
Despite Qatar’s declaration of force majeure, Pakistan continued efforts to meet its RLNG requirements through available contracted supplies and additional spot cargoes where necessary, according to the statement.
Tariff measures limit overall increase
The Power Division said the combined impact of fuel price adjustments and quarterly tariff adjustments during January-August 2026 had been limited to 65 paisa per unit, equivalent to an increase of just 1.9% over the base electricity tariff.
It attributed the relatively limited increase partly to tariff rationalisation measures and an additional electricity consumption package for industrial and agricultural consumers.
These initiatives were intended to encourage businesses and farmers to increase their use of electricity from the national grid.
The government has been seeking to manage electricity costs while addressing the impact of volatile international fuel markets and supply disruptions on domestic power generation.
Government monitoring fuel supply risks
The Power Division said it was continuing to monitor developments in international energy markets and fuel supply chains while implementing measures to minimise the impact of external price shocks on electricity consumers.
However, the September adjustment is expected to add to electricity bills in November, placing further pressure on households and businesses already facing high energy costs.
The final impact on consumers will depend on the applicable fuel adjustment determination and its implementation in electricity billing. The projected Rs32.7 billion burden reflects the estimated financial impact of the September FPA, according to the Power Division.