DUNYA NEWS
Live
Business

Power Division announces relief for consumers in June

Updated on:

After adjusting both components, consumers would benefit from a net reduction of 20 paisa per unit.

ISLAMABAD (APP) - The Ministry of Energy (Power Division) on Tuesday announced that electricity consumers will receive a net relief of 20 paisa per unit during June 2026, as a negative quarterly tariff adjustment outweighs the positive monthly fuel cost adjustment.

According to an official statement, the Monthly Fuel Charges Adjustment (FCA) for April 2026 resulted in an increase of Rs1.73 per unit. However, the Quarterly Tariff Adjustment (QTA) for the first quarter of the year (January-March 2026) provided relief of Rs1.93 per unit.

After adjusting both components, consumers would benefit from a net reduction of 20 paisa per unit. Consequently, electricity prices in June 2026 will remain unchanged compared to the tariffs applicable from January to May 2026.

The Power Division said it was important to understand that a serious global energy crisis emerged in April 2026 due to the Iran-US conflict, which led to a severe shortage of Re-gasified Liquefied Natural Gas (RLNG). The expected Brent crude oil price in the international market rose sharply from around $70 per barrel to as high as $120 per barrel.

Under normal circumstances, such developments could have resulted in an additional fuel adjustment burden of Rs5 to Rs6 per unit on electricity consumers. However, the government took timely measures, including moderate load management of only two to 2.25 hours daily, early closure of markets, additional allocation of indigenous gas and limited use of furnace oil.

These interventions helped restrict the actual fuel adjustment to Rs1.73 per unit, preventing an estimated financial burden of around Rs38 billion from being passed on to consumers during April, it added.

The Power Division further stated that the reduction of Rs1.93 per unit under the quarterly adjustment, amounting to approximately Rs65 billion, was achieved through administrative reforms, reduction in line losses, increased electricity demand, tariff stability and incremental tariff packages.

The statement maintained that the developments reflected prudent tariff planning and effective management by the government, which helped protect consumers from a substantial increase in electricity costs despite challenging global and regional circumstances. 

Recommended For You

Follow Us on Social Media