Electricity Prices Likely to Increase Across Pakistan by Rs 1.78 Per Unit

Islamabad, February 27, 2026: Electricity prices in Pakistan may increase by Rs 1.78 per unit, including for consumers in Karachi. The proposed hike was discussed during a recent hearing of the National Electric Power Regulatory Authority (NEPRA).

The request was submitted by the Central Power Purchasing Agency (CPPA). Officials said the increase is due to higher fuel costs recorded in January. NEPRA is expected to announce its final decision soon.

Why Are Electricity Prices Increasing?

According to officials, Pakistan sold around 8.76 billion units of electricity in January. The reference fuel cost was estimated at Rs 10.39 per unit. However, the actual cost increased to Rs 12.17 per unit.

The rise happened because of low hydropower generation and higher electricity demand. As a result, the CPPA requested a tariff adjustment of Rs 1.78 per unit.

Concern Over Furnace Oil-Based Power Plants

During the hearing, NEPRA members raised serious concerns about the use of expensive furnace oil-based power plants.

NEPRA Member (Tariff & Finance) Punjab, Amna Ahmed, questioned why costly plants were operating while electricity prices continue to rise. She said this practice may not benefit consumers.

Another member, Maqsood Anwar, noted that a major part of the cost increase is linked to reliance on furnace oil for electricity production.

Impact on K-Electric Consumers

If approved, the price hike will also apply to customers of K-Electric under government policy.

Officials explained that expensive power plants were used to meet peak demand during high consumption hours. However, the continued reliance on costly fuel sources highlights deeper issues in Pakistan’s power sector.

Ongoing Energy Sector Challenges

Pakistan’s electricity sector continues to face problems such as rising fuel prices, low hydropower output, and operational inefficiencies. These issues are placing additional pressure on household budgets across the country.

Consumers are now waiting for NEPRA’s final verdict on the proposed increase.