Federal Government to End Rs 7.41 per Unit Electricity Subsidy from August

The federal government has decided not to extend the Rs 7.41 per unit electricity subsidy, which is set to end next month, sources revealed on Wednesday.

This subsidy, provided to electricity consumers for three months, was announced by Prime Minister Shehbaz Sharif in April 2025 as part of a relief package. The concession will no longer be available starting August.

In addition, the Prime Minister had announced a separate Rs 7.59 per unit concession for the industrial sector on April 4, coinciding with Eid.

The relief package involved multiple quarterly adjustments: a Rs 1.90 per unit concession was granted for the second quarter (April-June 2025), and Rs 1.55 per unit for the third quarter (May-July 2025). Alongside these, a Rs 1.71 per unit discount was applied under the petroleum product price adjustments, and a Rs 0.90 per unit concession under the fuel price adjustment.

The final Rs 1.55 per unit discount for the third quarter will be reflected in consumers’ July electricity bills. Sources also noted that the fuel cost adjustment for June, included in the July bills, is expected to be negative.

Meanwhile, the National Electric Power Regulatory Authority (Nepra) has completed hearings on a request to increase electricity prices by Rs 0.10 per unit, based on the May fuel cost adjustment.

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