ISLAMABAD: The government is set to pass on a positive Fuel Charges Adjustment (FCA) of Rs1.73 per unit for April 2026 across the country reflecting higher power generation costs due to negligible RLNG supply. The financial impact of proposed FCA adjustment will be over Rs 14 billion.
However, the impact of the increase will be offset by a negative Quarterly Tariff Adjustment (QTA) of Rs1.93 per unit for the first quarter (January–March) of 2026, resulting in a net relief of Rs 0.20 per unit for consumers.
According to an official statement issued by the Power Division on Monday, timely government interventions, prudent policymaking, and moderate load management have helped shield electricity consumers from a potential tariff hike of Rs 5 to Rs 6 per unit for June 2026.
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Despite severe RLNG shortages caused by regional tensions, particularly the Iran-US conflict, a sharp surge in international fuel prices, and increased reliance on expensive furnace oil for power generation, policy continuity has ensured that electricity bills for June will not increase. Instead, consumers are expected to receive relief of up to 20 paisa per unit.
Details reveal that improved administrative measures, reduced line losses, and ongoing reforms have led to a decrease of Rs1.93 per unit under the QTA for the first quarter of 2026, which will remain applicable for the next three months. The total financial impact of this adjustment is estimated at Rs 65 billion.
Similarly, the monthly FCA for April 2026, initially projected to increase tariffs by Rs5 to Rs6 per unit, has been contained at Rs1.73 per unit due to timely interventions.
The combined impact of quarterly and monthly adjustments has effectively neutralised the expected increase, resulting in a minor net relief of around 20 paisa per unit. As a result, electricity tariffs for June 2026 are expected to remain largely unchanged compared to the January–May 2026 period.
Power Division stated that the government successfully prevented a potential burden of around Rs38 billion in April alone from being passed on to consumers by containing the fuel adjustment impact.
Data indicates that during the first quarter (January–March 2026), the quarterly adjustment resulted in a negative impact of Rs65 billion, translating into a relief of Rs1.93 per unit for consumers. In contrast, the fuel adjustment for April recorded a positive impact of Rs19 billion. Overall, a net relief of Rs46 billion has been passed on to consumers.
This reduction is primarily attributed to increased electricity demand, lower line losses, price stability, and higher consumption under incremental tariff packages.
NEPRA had determined the base tariff based on assumptions regarding fuel prices, exchange rates, demand patterns, and generation mix, which was later notified by the federal government after incorporating subsidies. However, the regional conflict significantly altered the situation, pushing global fuel prices sharply higher and disrupting supply chains.
Copyright Business Recorder, 2026
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