Pakistan hikes electricity tariff in double whammy after fuel price rise
New Delhi, April 12
Pakistan's National Electric Power Regulatory Authority has delivered a major shock to the country's consumers with an increase in electricity tariffs by Rs 1.42 per unit under the monthly fuel cost adjustment, citing a variation in fuel charges for February 2026.
The Rs 1.42 per unit rise for February's fuel adjustment will now be collected from consumers in April bills and, according to some reports, the overall additional burden consumers now have to shoulder comes to around Rs10.57 billion, according to an editorial piece in Pakistan's The News International.
Aside from conserving fuel, the austerity measures the government has taken in the wake of the Middle East conflict can also be seen as a way to help people save money. However, in this country, be it the pump or the home, there does not appear to be anywhere people can hide from price and tariff hikes.
And for now, the global energy future remains murky. As such, Pakistanis could well find themselves paying more for fuel and for power through this month, the article laments.
There is also the impact on the country's beleaguered industry to consider. A representative of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has reportedly said that the industrial sector has already borne an aggregate burden of Rs 564.7 billion over the past three years and that further increases would be detrimental to sustainability and industrial viability, the article observes.
However, Pakistan's power malaise long pre-dates the Middle East turmoil. In FY2024-25, Pakistan's power distribution sector bled a combined Rs 397 billion due to transmission and distribution losses and weak bill recoveries. If this is not in the control of the authorities, it should be. So should the hefty fixed payments made to power producers regardless of output and the low utilisation of power plants, the report points out.
— IANS
Reader Comments
The article mentions Rs 397 billion lost to transmission losses and poor recoveries! That's the real story. No amount of tariff hikes will fix a broken system. Efficiency and governance reforms have to come first. A lesson for all developing economies.
It's the industrial sector I feel for. An extra burden of Rs 564.7 billion in three years? How can any business plan for the future with such uncertainty? This will hurt jobs and exports badly. 😟
Global fuel prices affect everyone, but the "fixed payments to power producers regardless of output" is shocking. Why should consumers pay for inefficiency? This is a basic failure in policy design. We must ensure such clauses don't creep into our agreements here.
A double whammy indeed - fuel and electricity. The middle and lower class families will be squeezed the most. It highlights the importance of investing in renewables and having a diversified energy mix to shield from such global shocks.
While the situation is difficult, I respectfully think the article could have provided more comparative data. How does this hike compare to historical adjustments? What is the actual percentage increase for an average household? Context helps in understanding the true impact.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.