Pakistan Hikes Electricity Prices by 35 Paisa per Unit Amid Global Energy Price Surge

The federal government on Wednesday increased electricity prices in Pakistan, raising the per unit price by 35 paisa effective immediately.

According to a notification issued by NEPRA, the new electricity rates will remain in effect for the next three months, from March to May. The adjustment applies to all consumers of DISCOs as well as K-Electric.

This increase comes as part of the second quarterly review of the current fiscal year and is expected to add an extra burden of Rs8.67 billion on consumers.

On the international front, crude oil prices surged sharply at the start of the ongoing conflict, with Brent crude briefly rising 8‑13 per cent to multi‑month highs above $80 per barrel amid fears of supply disruptions from the Middle East. Prices remain elevated, with market analysts noting that geopolitics remains the dominant driver of oil costs.

European diesel prices jumped 17 per cent to 23‑month highs, while natural gas prices across Europe also spiked, contributing to broader energy cost pressures. Analysts warn that supply risks remain acute due to attacks on energy infrastructure in the Gulf and shipping disruptions in the Strait of Hormuz, a key chokepoint for global oil shipments.

Rising insurance costs and tanker rerouting are further adding to market uncertainty. Even countries far from the conflict, including Pacific nations, are bracing for fuel price hikes as the conflict continues to ripple through global petroleum markets.