ISLAMABAD: Federal Minister Sardar Awais Ahmad Khan Leghari said on Tuesday that timely actions and decisions taken by the Power Division resulted in a decrease in Fuel Cost Adjustment for August 2026 from Rs. 2.0851 per unit to Rs. 1.73 per unit, compared to the previous month.
The Federal Minister said that timely decisions not only helped reduce the per-unit Fuel Cost Adjustment but also prevented a potential additional burden of Rs. 10.6 billion on consumers and helped save valuable foreign exchange.
The Federal Minister said the credit for this reduction goes to the people, who cooperated with the government and endured a few hours of load management during night time hours. Federal Minister Sardar Awais Ahmad Khan Leghari said, “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.”
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The minister said this is the result of the government’s public-friendly policies, with timely measures directly benefiting consumers. Had these measures not been taken, the fuel cost adjustment would have increased by more than Rs. 10.6 billion compared to the previous month, placing an additional burden on consumers.
Leghari further said that a key factor behind this achievement was the maximum utilization of domestic resources. In August 2026, 72 percent of total electricity generation was sourced from domestic resources, including hydel (38 percent), local coal (11 percent), nuclear (10 percent), local gas (7 percent), wind (6 percent) and solar energy (1 percent). Only 28 percent of electricity generation came from imported coal and RLNG.
The minister said that due to disruptions in RLNG supplies, spot cargo prices rose to $23–25 per MMBtu, which were exceptionally high. In these circumstances, on the Prime Minister’s directions, the Power Division remained in close coordination with the Petroleum Division and NCMC to arrange additional domestic gas for the power sector, making it possible to avoid purchasing expensive RLNG.
If the domestic gas had not been available, the power sector would have faced an additional hour of load shedding. Moreover, generation through furnace oil or imported RLNG would have increased consumer tariffs by approximately Rs. 10.6 billion. Timely measures prevented this additional burden. These coordinated efforts and effective fuel portfolio management resulted in a lower FCA for August 2026.
The government remains committed to providing maximum possible relief to the people under its public-friendly policies.
Copyright Business Recorder, 2026
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