Pakistan hikes electricity tariff in double whammy after fuel price rise

12 April,2026 04:25 PM IST |  New Delhi  |  mid-day online correspondent

The hike is linked to variations in fuel costs recorded in February 2026 and will be reflected in electricity bills issued in April; move is expected to impose an additional burden of approximately Rs 10.57 billion on consumers nationwide

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Pakistan's power regulator, the National Electric Power Regulatory Authority (NEPRA), has increased electricity tariffs by Rs 1.42 per unit under the monthly fuel cost adjustment mechanism, adding to the financial strain on consumers already grappling with rising fuel prices, reported IANS.

The hike is linked to variations in fuel costs recorded in February 2026 and will be reflected in electricity bills issued in April. The move is expected to impose an additional burden of approximately Rs 10.57 billion on consumers nationwide, according to media reports, reported IANS.

Consumers Hit Amid Rising Cost of Living

The tariff increase comes at a time when households are already dealing with escalating living costs. With fuel prices on the rise, the latest revision in electricity rates has created a double impact, affecting both transportation and household expenses.

Analysts note that while the government has introduced certain austerity measures in response to the ongoing tensions in the Middle East, these steps have done little to shield ordinary citizens from rising costs. Consumers continue to face higher expenses both at fuel stations and in their monthly utility bills, reported IANS.

Industry Warns of Mounting Financial Pressure

The hike has also raised concerns within Pakistan's industrial sector. A representative from the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) warned that continued increases in energy costs could severely impact industrial sustainability, reported IANS.

According to estimates, the industrial sector has already borne a cumulative burden of Rs 564.7 billion over the past three years. Stakeholders fear that additional tariff hikes may further erode competitiveness and hinder economic growth, reported IANS.

Long-Standing Structural Issues in Power Sector

Experts point out that Pakistan's energy challenges are not new and predate current geopolitical tensions. Structural inefficiencies, including transmission and distribution losses, continue to weigh heavily on the power sector.

During the financial year 2024-25, Pakistan's power distribution companies reportedly suffered combined losses of around Rs 397 billion due to inefficiencies and poor bill recovery. These systemic issues remain largely unresolved and continue to drive up costs for consumers.

Uncertain Global Energy Outlook Adds to Concerns

The global energy market remains uncertain, with fluctuating fuel prices adding to the volatility. This uncertainty is expected to keep pressure on Pakistan's power tariffs in the coming months, reported IANS.

Experts also highlight concerns over fixed capacity payments to power producers, which must be made regardless of actual electricity generation, as well as the underutilisation of power plants. Addressing these issues, they say, is critical to achieving long-term stability in the energy sector, reported IANS.

For now, however, consumers and businesses alike appear set to bear the brunt of rising electricity and fuel costs, with limited relief in sight.

(With inputs from IANS)

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