Electricity consumers in Pakistan are likely to get a relief of about Rs1.14 per unit in their March 2026 bills as fuel costs have dropped due to a significant reduction in LNG-based power generation.
The Central Power Purchasing Agency has submitted a petition to the National Electric Power Regulatory Authority, proposing a fuel cost adjustment (FCA) of Rs0.2660 per unit.
This proposed adjustment is lower than last month’s charge of Rs1.42 per unit, and the expected benefit will be passed on to consumers.
Hydropower generation has increased by more than 62 percent, reaching 2,105 GWh, making it the largest contributor with a 23.55 percent share.
On the other hand, RLNG-based generation has fallen sharply by 67 percent to 504 GWh, reducing dependence on costly fuel sources. RLNG electricity is being produced at around Rs24.55 per unit, while cheaper options like hydel and nuclear power are being used more.
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Electricity is also being generated from local coal, imported coal, and gas, while RFO-based generation remains limited but expensive. Overall fuel costs have come down to Rs8.26 per unit, slightly lower than February and nearly Rs1 less compared to last year.
Although an additional burden of Rs2.3 billion has been included under the FCA, consumers are still expected to receive lower bills. A public hearing on the matter is scheduled for April 28, 2026, after which the final decision will be made.