September FPA capped at Rs2.56/unit

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Rs32.7b impact on November bills; RLNG at domestic rates eases burden by 83 paisa


ISLAMABAD:

The Ministry of Energy (Power Division) has averted a potential Rs5-6 per unit hike in the September 2026 Fuel Price Adjustment (FPA), limiting the projected adjustment to Rs2.56 per unit despite rising international fuel prices and constraints on liquefied natural gas (LNG) supplies.

The division said targeted load management for approximately two to two-and-a-half hours during September helped reduce reliance on costly alternative fuels, including furnace oil and high-speed diesel, saving consumers from an additional burden of up to Rs3.44 per unit. It added that the provision of imported re-gasified liquefied natural gas (RLNG) for power generation at domestic gas prices eased the burden by a further 83 paisa per unit.

Consequently, the September FPA is expected to be Rs1.45 per unit higher than August, with an estimated financial impact of Rs32.7 billion on consumers’ electricity bills in November 2026.

The Power Division said international fuel prices rose sharply amid regional conflict and disruptions following the closure of the Strait of Hormuz. Brent crude prices surged beyond $120 per barrel against the benchmark of around $70 assumed during determination of the base tariff.

Despite Qatar’s force majeure declaration, Pakistan met its RLNG requirements through contracted supplies and additional spot cargoes.

The statement said the combined impact of fuel price and quarterly tariff adjustments during January-August 2026 was limited to 65 paisa per unit, an increase of only 1.9% over the base tariff. It attributed this partly to tariff rationalisation measures and an additional consumption package for industrial and agricultural consumers.

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