Power tariffs may rise over Rs2 per unit as furnace oil use increases in March

Power consumers are expected to face a fuel charges adjustment of more than Rs2 per unit for March 2026 due to higher reliance on furnace oil-based generation amid reduced RLNG supply, according to sources.

The Central Power Purchasing Agency (Guaranteed), acting as market operator, will calculate the adjustment based on total power generation and fuel costs during the month.

Sources said furnace oil prices increased from around Rs0.2 million per ton in February to approximately Rs0.4 million per ton just before the announcement of a two-week ceasefire, raising generation costs.

Hydropower output also declined during the period, with Tarbela generation affected as provinces did not submit water indents amid ongoing rains. The rainfall has also impacted agricultural output, including wheat crops in Sindh and southern Punjab.

RLNG-based power generation remained constrained due to limited gas availability. Around 3,600MW of RLNG-based plants were partially supplied with indigenous gas, but overall supply remained below demand.

According to the Power Division, RLNG demand for the power sector stands at about 300 million cubic feet per day (MMCFD), while supply from Sui Northern Gas Pipelines Limited is around 130 MMCFD. During March 20–30, gas availability dropped further to about 85 MMCFD, with current supply estimated at 80 MMCFD against a demand of around 350 MMCFD.

Pakistan operates three major RLNG-based combined-cycle power plants with a combined capacity exceeding 3,600MW, including Bhikki (1,180MW), Haveli Bahadur Shah (1,230MW) and Balloki (1,223MW), commissioned between 2015 and 2018.