• Average fuel cost jumps to Rs10.02 per unit from Rs7.29 last year
• HSD generation cost hits Rs62.14 per unit as use surges
• Imported coal share almost doubles to 16.3pc of total generation
ISLAMABAD: Power consumption rose by about four per cent in September from a year earlier, but its fuel cost surged by almost 37.5pc, mainly because high-tax-laden expensive fuels were used to compensate for war-related constraints on liquefied natural gas (LNG) supplies and greater reliance on imported coal.
Data reported by the Central Power Purchasing Agency (CPPA) to the National Electric Power Regulatory Authority (Nepra) put the average fuel cost at Rs10.022 per unit in September 2026 against Rs7.29 per unit a year earlier, showing an increase of Rs2.74 per unit, or 37.48pc.
However, data also revealed that power consumption in September was down by about 12pc compared to August, while the fuel cost increased by 13.5pc to Rs10.022 per unit from Rs8.83.
The CPPA also reported generation of about 213 gigawatt hours (GWh) from high-speed diesel (HSD), or around 1.6pc of total grid supply, after many months of limited use. Its generation cost reached a record Rs62.14 per unit compared to Rs54 per unit in August, when HSD-based generation stood at only 80GWh.
Furnace oil-based generation cost dropped slightly to Rs44.86 per unit in September, with output of 263GWh, against about Rs46 per unit in August, when generation stood at 321GWh. Its share in overall grid supply remained almost unchanged at around 2pc.
Ironically, furnace oil carries around Rs75,000 per tonne in taxes on domestic consumption under IMF requirements, even though it is produced locally and surplus output is exported at a discount. The CPPA has publicly expressed its inability to reduce or waive taxes and duties on furnace oil despite seeking lower power generation costs.
Two major factors contributed to the price shock, prompting the CPPA to seek an additional fuel cost adjustment of about Rs2.5624 per unit from consumers.
These included lower RLNG-based generation, which fell to about 804GWh in September from 1,815GWh in the same month last year, and lower nuclear generation, which declined to 1,893GWh from 2,227GWh.
The decline in nuclear output was mainly due to the prolonged return of nuclear power plants from refuelling and technical repairs. However, nuclear generation improved from 1,528GWh in August as plants returned to service.
As a consequence, the share of imported coal-based generation almost doubled to 16.3pc in September from 8pc in the same month last year. Output from imported coal rose to 2,155GWh from 1,019GWh.
The generation cost from imported coal also increased by about 25.5pc to Rs17.24 per unit compared to Rs13.74 per unit in September last year.
The increase in overall generation cost came despite about 76pc of electricity produced in September coming from domestic sources that are either cheaper or carry little or no fuel cost.
These included hydropower, which contributed around 37pc of generation at zero fuel cost, and domestic coal, with a share of about 10pc at around Rs6 per unit compared to Rs13 per unit a year earlier.
In addition, local gas, nuclear and renewables contributed about 29pc share to the national grid at almost unchanged fuel costs. Last year, supplies from these domestic sources were slightly higher, at around 76.5pc.
Published in Dawn, October 17th, 2026
