ISLAMABAD: Federal Minister for Power Awais Leghari has said timely measures by the Power Division helped bring down the Fuel Cost Adjustment (FCA) for August 2026 to Rs1.73 per unit from Rs2.08 per unit in July, protecting electricity consumers from an additional financial burden of around Rs10.6 billion.
In a statement issued on Tuesday, Leghari said the reduction was achieved through timely decisions on fuel management and greater reliance on domestic energy resources.
He said the measures also helped conserve foreign exchange by reducing the need for expensive imported fuels at a time when international energy markets were under pressure.
The minister thanked consumers for cooperating with the government, saying the public’s acceptance of limited nighttime load management had contributed to lower generation costs.
“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,” he said.
Leghari said the lower FCA represented a direct benefit for consumers and reflected the impact of measures taken by the government to manage the country’s fuel mix more efficiently.
Domestic resources account for 72% of generation
According to the minister, domestic energy sources accounted for 72% of Pakistan’s total electricity generation during August.
Hydropower contributed the largest share at 38%, followed by local coal at 11%, nuclear energy at 10%, local gas at 7%, wind at 6% and solar power at 1%.
The remaining 28% of generation came from imported coal and re-gasified liquefied natural gas (RLNG).
Leghari said interruptions in RLNG supplies had pushed spot-market prices to between $23 and $25 per MMBtu, making imported gas considerably more expensive for power generation.
He said the Power Division, acting on the prime minister’s directives, coordinated with the Petroleum Division and the National Crisis Management Cell (NCMC) to arrange additional supplies of domestic gas for power plants.
This enabled the government to reduce its dependence on costly RLNG purchases, he added.
Domestic gas helps avoid additional load shedding
The minister said securing additional domestic gas supplies also helped avert another hour of load shedding.
Had the additional gas not been made available, power producers would have had to rely more heavily on furnace oil or imported RLNG, potentially increasing electricity costs by approximately Rs10.6 billion, he said.
Leghari attributed the overall reduction in the August FCA to coordinated decision-making and improved management of the power sector’s fuel portfolio.
He reiterated that the government would continue pursuing measures aimed at lowering electricity costs and providing relief to consumers through better utilisation of domestic energy resources.
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