Consumers are likely to face an increase of up to 19 paisa per unit in electricity tariffs on account of fuel cost adjustment (FCA) for August 2025. The price revision will reflect in the monthly bills of October.
The National Electric Power Regulatory Authority (Nepra) conducted a public hearing at its headquarters on Monday to consider a petition filed by the Central Power Purchasing Agency-Guarantee (CPPA-G), seeking an increase of up to 19 paisa per unit in the electricity price.
CPPA-G demanded the tariff hike due to fluctuations in prices of fuels used in power generation. The power-sector regulator reserved its decision, which would be issued later after detailed scrutiny of data.
Representatives of the Ministry of Energy, members of the business community, journalists and the general public attended the hearing. CPPA-G stated that the requested adjustment would be applicable for one month only.
It said the FCA would apply to all consumers of distribution companies (DISCOs), including K-Electric, except for lifeline customers, prepaid users and electric vehicle charging stations. If the request is approved, the consumers will face an additional burden of more than Rs3 billion.
Industrial consumers, who were present at the hearing, expressed strong concern over the proposed tariff spike, warning that withdrawal of the prime minister's support package had already raised their costs by 10%. They pointed out that industrial tariffs could rise from Rs29 to Rs35 per unit, adding that they had been promised power supply at 9 cents per unit.
Nepra said that views of all stakeholders had been heard carefully and it would announce a detailed decision after further verification of the submitted data.
According to the CPPA-G petition, the fuel cost for power generation averaged Rs7.5059 per kilowatt-hour (kWh), compared with the reference price of Rs7.3149/kWh.
After accounting for transmission losses, sales to independent power producers (IPPs) and prior adjustments, the net cost at which electricity was delivered to DISCOs was Rs7.5059/kWh. Based on that calculation, CPPA-G requested an upward tariff revision of Rs0.1911/kWh.
Coal-based power production provided a significant proportion of supply, with local coal producing 1,442 gigawatt hours (GWh) at a cost of Rs12.0146/kWh and imported coal generating 1,138 GWh at Rs14.0753/kWh.
Nuclear energy, which produced 2,145 GWh, or 15.09% of total generation, delivered supplies at a comparatively low cost of Rs2.1950/kWh. Imported electricity from Iran, though a minor contributor at 78 GWh, carried a much higher price tag of Rs41.0948/kWh.
Residual fuel oil-based plants, despite their limited share of 92 GWh (0.65%), had the most expensive unit cost among conventional fuels at Rs33.0064/kWh. With high-speed diesel, not a single unit was produced.
Fuel cost adjustments are made under Section 31(7) of the Nepra Act 1997. A notice highlights that the federal government's policy guidelines on uniform fuel cost adjustments require that the charges applicable to DISCOs are also extended to K-Electric consumers, ensuring parity across the country.
Diesel, petrol prices may go up
Similarly, oil consumers are likely to face a hike of up to Rs2.48 per litre in the price of high-speed diesel in line with fluctuations in global markets, effective from October 1, 2025. The price of petrol may rise by Rs1.97 per litre.
For end-consumers, the ex-depot sale price of petrol is expected go up from Rs264.61 to Rs266.58. In the same manner, the price of diesel may touch Rs275.25 per litre against the existing Rs272.77 per litre.
Meanwhile, the price of kerosene oil is likely to be increased by Rs4.65 to Rs184.61 per litre against the current level of Rs179.96 per litre. Light diesel oil (LDO) may see a price hike of Rs1.76 to Rs165.18 per litre compared to the existing rate of Rs163.42 per litre. The price revisions will translate into an increase of 0.7% to 2.6% at the retail level.
High-speed diesel is widely used in transport and agricultural sectors. Therefore, a potential price increase will have an impact on the two vital sectors, which are linked to the masses.
Moreover, petrol is used in bikes and cars and any price spike will have a larger impact on the consumers. Kerosene oil is widely consumed in remote areas, especially in the northern region of the country, where liquefied petroleum gas (LPG) is not available for cooking purposes. Pakistan Army is a key consumer of kerosene oil. LDO is mainly used in the industry.
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