ISLAMABAD: Power consumers are likely to face a positive Fuel Charges Adjustment (FCA) of over Rs 2 per unit for March 2026, mainly due to increased reliance on expensive furnace oil amid reduced RLNG-based generation, sources told Business Recorder.
The Central Power Purchasing Agency (Guaranteed), acting as the market operator, will determine the impact of fuel cost variations based on total power generation during the month.
According to sources, the price of furnace oil rose sharply from around Rs 0.2 million per ton in February 2026 to approximately Rs 0.4 million per ton the day before the two-week ceasefire was announced.
The National Electric Power Regulatory Authority (NEPRA) is expected to approve an FCA of Rs 1.64 per unit for the month of February 2026, which will be recovered from consumers in the current billing cycle. In February neither RFO was consumed nor HSD for power generation.
READ MORE: Nepra penalises CPPA-G for ‘overburdening’ consumers
Sources said hydropower generation from Tarbela has declined significantly as provinces have not submitted water indents amid widespread rains. The rains have also damaged standing crops, including wheat ready for harvest in Sindh and southern Punjab.
They added that around 3,600 MW RLNG-based power plants located in load centres are currently being supplied indigenous gas to a limited extent.
On March 14, 2026, the Power Division Pakistan informed Business Recorder that the power sector’s RLNG requirement stands at about 300 MMCFD, against which allocation from Sui Northern Gas Pipelines Limited is approximately 130 MMCFD. At present, this volume is being supplied to a single power plant.
It was further indicated that gas availability dropped to around 85 MMCFD between March 20 and 30. Currently, SNGPL is supplying total 80 MMCFD of indigenous gas against demand of round 350 MMCFD.
Pakistan operates three major RLNG-based combined-cycle power plants established between 2015 and 2018 to address electricity shortages. These include the 1,180 MW Bhikki Power Plant in Sheikhupura, the 1,230 MW Haveli Bahadur Shah Power Plant in Jhang, and the 1,223 MW Balloki Power Plant in Kasur, all commissioned in 2018.
The National Power Control Centre, as system operator, allocates electricity quotas to distribution companies (DISCOs), which adjust load-shedding hours accordingly. At times, outages range between 30 to 45 minutes, while in other instances they exceed one hour.
Officials, however, expect that with the end of the current spell of rains, load-shedding hours may increase further to manage the anticipated supply shortfall.
Copyright Business Recorder, 2026
Comments