ISLAMABAD: Federal Minister for Energy Sardar Awais Ahmad Khan Leghari on Tuesday said timely decisions by the Power Division had helped keep the Fuel Cost Adjustment (FCA) for August 2026 at around Rs1.73 per unit against Rs2.0851 per unit in the previous month, preventing an additional burden of Rs10.6 billion on electricity consumers.
The minister said the measures also helped save valuable foreign exchange amid rising international fuel prices and pressure on global fuel markets due to the situation in the Strait of Hormuz, said a press release.
He said the credit for this reduction goes to the people, who cooperated with the government and endured a few hours of load management during nighttime hours.
Leghari said, “I sincerely thank the people for supporting the government in reducing electricity prices, particularly at a time when fuel prices are rising globally and international fuel markets are facing severe pressure due to the situation in the Strait of Hormuz.”
Leghari said this was the result of the government’s public-friendly policies, with timely measures directly benefiting consumers. Had these measures not been taken, the fuel cost adjustment would have increased by more than Rs10.6 billion compared to the previous month, placing an additional burden on consumers.
The minister further said that a key factor behind this achievement was the maximum utilization of domestic resources. In August 2026, 72 percent of total electricity generation was sourced from domestic resources, including hydel (38%), local coal (11%), nuclear (10%), local gas (7%), wind (6%) and solar energy (1%). Only 28 percent of electricity generation came from imported coal and RLNG.
He said that due to disruptions in RLNG supplies, spot cargo prices rose to $23–25 per MMBtu, which were exceptionally high. In these circumstances, on the Prime Minister’s directions, the Power Division remained in close coordination with the Petroleum Division and NCMC to arrange additional domestic gas for the power sector, making it possible to avoid purchasing expensive RLNG.
If the domestic gas had not been available, the power sector would have faced an additional hour of load shedding. Moreover, generation through furnace oil or imported RLNG would have increased consumer tariffs by approximately Rs10.6 billion. Timely measures prevented this additional burden.
These coordinated efforts and effective fuel portfolio management resulted in a lower FCA for August 2026.
The government remains committed to providing maximum possible relief to the people under its public-friendly policies.
