After historic fuel price hike, Pakistan regulator likely to increase power tariff by Rs6.1

Two boys walk on a wall near high voltage electricity wires in Rawalpindi, Pakistan, on July 8, 2020. (AFP/File)

• 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

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.