- Surge follows increase in prices of petroleum products, flour
The National Electric Power Regulatory Authority (Nepra) approved on Friday a price increase of Rs4.83 per unit in K-Electric’s power tariff on account of fuel cost adjustment for March 2022.
The increase will reflect in the bills of customers for June 2022.
K-Electric had demanded Rs5.27 per unit increase in the power tariff to recover Rs8.592 billion from consumers. According to a petition filed by KE Director Finance Ayaz Jaffar Ahmed, the calculation for the month of March was based on Central Power Purchasing Agency-Guaranteed (CPPA-G) invoice for February 2022 and was subject to adjustments based on Nepra's decision.
According to a notification issued by Nepra, the surge shall be applicable to all consumer categories except lifeline consumers. Nepra also directed the increase to be shown separately in the bills on the basis of units billed to the consumers in the respective month to which the adjustment pertains.
The move comes a day after the government announced an increase in petroleum products’ prices by Rs30 per litre in an effort to revive the International Monetary Fund (IMF) programme.
Analysts have regularly pointed out that the resumption of the IMF programme is crucial for the South Asian country facing a bulging current account deficit amid a spike in the import bill. However, they have also warned that the move could spike up inflation.
Following the decision, the prices of petrol, diesel, kerosene oil and light diesel are now Rs179.86 per litre, Rs174.15 per litre, Rs155.56 per litre and Rs148.31 per litre respectively.
On Friday, the government also raised flour prices by Rs180 per 20kg, a move that could fuel inflation further.