Power companies in Pakistan have requested a Rs1.20 per unit increase in fuel cost charges for consumers in August, citing the use of expensive imported fuels as the primary reason.

Despite 75% of electricity generated in June coming from cheaper domestic sources with zero fuel costs, the request has been made due to a significant rise in fuel prices.

The National Electric Power Regulatory Authority (Nepra) has scheduled a public hearing on July 29 to examine the fuel cost adjustment (FCA) proposal.

The Central Power Purchasing Agency (CPPA) reported that electricity consumption in June 2026 was 13,066 million units, slightly lower than June 2025.

The increase in fuel costs is primarily attributed to the nearly doubled price of Regasified Liquefied Natural Gas (RLNG), which rose to Rs35 per unit from Rs16 per unit in June 2025.The reference fuel cost for June 2026 was set at Rs7.714 per unit, but the actual cost reached Rs8.90 per unit, necessitating the Rs1.20 per unit charge.Other contributing factors include furnace oil and diesel usage at Rs52 and Rs57 per unit, respectively.

The article highlights the disparity between local and imported fuel costs, with local coal and gas generating at lower rates compared to imported RLNG.The Oil and Gas Regulatory Authority (Ogra) also noted a 15% increase in RLNG prices due to supply disruptions caused by the US-Iran war.This adjustment will result in an additional Rs15.7 billion being charged to consumers through August bills.