Govt moves to defer LNG terminal charges as April fuel cost push triggers Rs1.73/unit power hike proposal

LNG-terminal

ISLAMABAD: The government has initiated talks with LNG terminal operators to defer or stagger capacity payments for idle infrastructure, following a force majeure event in Qatar that led to zero LNG imports in April, officials informed the power regulator on Tuesday.

Authorities told the National Electric Power Regulatory Authority (Nepra) during a public hearing on the Central Power Purchasing Agency’s (CPPA) fuel cost adjustment petition that any relief secured from terminal operators would be passed on to consumers through reduced electricity tariffs.

The CPPA has sought an increase of Rs1.73 per unit in electricity prices for April’s fuel cost adjustment, driven by higher fuel expenses and volatile supply conditions. If approved, the adjustment will be reflected in June electricity bills.

The hearing also raised serious concerns over power distribution performance, particularly in Karachi, where K-Electric faced scrutiny over prolonged and unannounced load-shedding amid extreme heat. Nepra directed the utility to submit a detailed report in response to widespread complaints from consumers and business groups regarding excessive outages and delayed fault restoration.

Meanwhile, the Power Division stated that consumers are expected to receive a net relief of 20 paisa per unit in June 2026, as a Rs1.93 per unit quarterly adjustment for January–March outweighs the proposed April fuel cost increase, keeping overall tariffs broadly stable during January–May 2026.

Story by Israr Khan

Related posts