Electricity prices in Pakistan are likely to decline by up to 72 paisa per unit under the monthly fuel adjustment mechanism, offering potential relief to consumers amid high energy costs.
According to official sources, the National Electric Power Regulatory Authority (Nepra) is set to take up a petition filed by the Central Power Purchasing Agency (CPPA) seeking a reduction in electricity tariffs. The plea will be reviewed in light of fuel cost data for November.
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During the month, power distribution companies (DISCOs) were supplied with 7.813 billion units of electricity. CPPA data shows that the average cost per unit stood at Rs6.16, reflecting relatively lower fuel expenses compared to previous months.
The generation mix for November indicates that hydropower remained the largest source of electricity, contributing 39.16 per cent of total output. Nuclear energy followed, accounting for 25.23 per cent, which helped keep overall generation costs in check due to its comparatively lower and stable fuel prices.
Electricity generation from local coal stood at 9.34 per cent, while imported coal contributed 5.06 per cent. Gas-based generation accounted for 8.44 per cent, and imported liquefied natural gas (LNG) made up 8.64 per cent of the total electricity produced during the month.
If approved by Nepra, the proposed reduction will be passed on to consumers in their upcoming electricity bills as part of the fuel cost adjustment mechanism. However, officials noted that the final impact on consumers would depend on regulatory approval and applicable caps.
Separately, sources have indicated that petroleum prices may also see a significant reduction from January 1, 2026. Petrol prices are expected to drop by Rs10.60 per litre, while high-speed diesel may be reduced by Rs8.59 per litre.
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Light diesel oil and kerosene prices are also likely to be cut, providing broader relief on the energy front. The Oil and Gas Regulatory Authority (Ogra) is expected to forward its recommendations to the Petroleum Division, after which final approval will be sought from Prime Minister Shehbaz Sharif.