ISLAMABAD: Pakistan’s main electric power regulator is likely to increase the power tariff by Rs6.1 per unit in March electricity bills, local media reported on Sunday, days after a historic hike in the prices of petroleum products.
The possible hike in power tariff will add to the burden of the masses, who are already reeling from inflationary pressures in Pakistan due to rising food and fuel prices worldwide.
The increase in power tariff will come on the back of fuel price adjustment for the month of January, as the country paid a high price for producing power from furnace oil and diesel, the Dawn newspaper reported.
“In an application, the Central Power Purchasing Agency (CPPA) has informed the power sector regulator that the net cost of electricity production was Rs12.61 per unit during the month [of January],” the report read.
“The reference fuel charges set by the National Electric Power Regulatory Authority (NEPRA) stand at Rs6.51 per unit, or kilowatt hour. The CPPA has sought an increase of Rs6.10 per unit on account of Fuel Charges Adjustment (FCA) for January.”
NEPRA has summoned a public hearing on the matter on February 28 and invited all concerned entities and citizens to present their points of view on the CPPA demand, according to the report.
The regulator generally accepts the CPPA’s demands regarding fuel price adjustment.
Pakistan earlier this week increased the prices of petrol, high-speed diesel, kerosene and light diesel oil, with petrol going up by a record Rs12.03 per liter.
After the increase of Rs12.03, petrol is now available for Rs159.86 and high-speed diesel at Rs154.15, a rise of Rs9.53.
Kerosene is being sold for Rs126.56 per liter after an increase of Rs10.08, while light diesel oil is available for Rs123.97 after a Rs9.43 hike.
The government has faced criticism for increasing fuel prices during the last few months, but top officials argue the country still offers petroleum products at the cheapest rates in the region.
Pakistan fixes prices of petroleum products on a fortnightly basis to pass on the impact of fluctuating international prices to consumers.
In January, NEPRA jacked up the power tariff by Rs4.30 per unit, allowing distribution companies (DISCOs) to charge consumers an additional fuel cost for their November 2021 bills.
After historic fuel price hike, Pakistan regulator likely to increase power tariff by Rs6.1
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After historic fuel price hike, Pakistan regulator likely to increase power tariff by Rs6.1
- Hike in power tariff will come on the back of fuel price adjustment for the month of January
- The country’s power regulator usually accepts demands regarding the fuel price adjustment
Pakistan seeks Saudi oil route via Red Sea port as Hormuz closure threatens supplies
- Islamabad requests alternative crude shipments through Saudi Arabia’s Yanbu port on the Red Sea
- Most of Pakistan’s energy imports transit the Strait of Hormuz, now disrupted by regional conflict
ISLAMABAD: Pakistan has asked Saudi Arabia to help secure crude oil supplies through the Red Sea port of Yanbu as the closure of the Strait of Hormuz threatens the country’s energy supply routes, the petroleum ministry said on Wednesday.
The request comes as the strategic waterway between Iran and Oman was shut after escalating hostilities between Iran and the United States and Israel in the Gulf, disrupting tanker traffic through one of the world’s most important oil chokepoints.
About one-fifth of global oil shipments normally pass through the Strait of Hormuz, including exports from Saudi Arabia, Iraq, Kuwait, the United Arab Emirates and Qatar. Pakistan relies heavily on Middle Eastern crude, with the majority of its energy imports typically transiting the strait, making any disruption a major risk to domestic fuel supplies.
During a meeting in Islamabad with Saudi Ambassador Nawaf bin Said Al-Malki, Petroleum Minister Ali Pervaiz Malik discussed contingency plans to maintain Pakistan’s energy supply chain. According to a statement from Malik’s office, Saudi Arabia indicated it could facilitate shipments through the Red Sea port of Yanbu, offering an alternative route if Gulf shipping lanes remain disrupted.
“Saudi Arabian sources had assured security of supplies through the Port of Yanbu on the Red Sea, which can help meet energy requirements,” the statement said.
“Pakistan is closely monitoring the evolving situation on a daily basis, as the majority of Pakistan’s energy supplies transit through the Strait of Hormuz.”
The Saudi ambassador reaffirmed Riyadh’s support, saying the Kingdom was aware of the evolving situation and would stand with Pakistan to meet any emergency requirements, the statement added.
Saudi Arabia and Pakistan share long-standing economic and strategic ties, with Riyadh serving as one of Islamabad’s key energy suppliers.
