Federal Minister for Power Awais Leghari said on Tuesday that timely decisions by the Power Division reduced the Fuel Cost Adjustment (FCA) for August 2026 to Rs1.73 per unit from Rs2.08 per unit in the previous month, preventing an estimated additional burden of Rs10.6 billion on electricity consumers.
In a statement, Leghari said the measures not only lowered the per-unit FCA but also helped conserve foreign exchange by reducing the need for expensive imported fuel.
Domestic energy boosts power generation
The minister credited the reduction partly to increased utilisation of domestic energy resources. He said 72% of total electricity generation in August came from local sources.
Hydropower accounted for 38% of generation, followed by local coal at 11%, nuclear power at 10%, local gas at 7%, wind at 6% and solar energy at 1%.
The remaining 28% of electricity generation came from imported coal and re-gasified liquefied natural gas (RLNG).
Leghari also thanked consumers for their cooperation with the government’s nighttime load management measures, saying the temporary reduction in electricity demand contributed to lowering generation 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,” he said.
NEPRA Hikes Electricity Tariff by Rs2.58 Per Unit
Expensive RLNG imports avoided
Leghari said disruptions in RLNG supplies pushed spot cargo prices to between $23 and $25 per MMBtu, making imported gas significantly more expensive.
He said the Power Division, acting on the prime minister’s directives, coordinated with the Petroleum Division and the National Crisis Management Cell (NCMC) to secure additional domestic gas supplies for power generation.
According to the minister, the additional domestic gas allowed the government to avoid purchasing costly RLNG and helped prevent further pressure on electricity tariffs.
He said the availability of domestic gas also prevented an additional hour of load shedding. Without the additional supply, electricity generation through furnace oil or imported RLNG would have increased the burden on consumers by around Rs10.6 billion.
Government highlights coordinated fuel management
Leghari said coordinated efforts and effective management of the country’s fuel portfolio played a key role in reducing the August FCA.
He added that the government would continue working to maximise the use of domestic energy resources and provide relief to consumers through measures aimed at controlling electricity generation costs.
