Power companies have petitioned for a Rs1.20 per unit increase in fuel cost charges for August, citing a heavy reliance on expensive imported fuels despite nearly 75% of June's electricity coming from cheaper domestic sources. The Central Power Purchasing Agency (CPPA) filed the request with the National Electric Power Regulatory Authority (Nepra), which has scheduled a public hearing for July 29 to review the proposed adjustment. Main Developments The CPPA's petition seeks to recover an additional Rs15.7 billion from consumers across all power utilities, including ex-Wapda Distribution Companies (Discos) and K-Electric, through their August bills. This would raise the per-unit charge from the reference fuel cost of Rs7.714 to an actual cost of Rs8.90, reflecting a Rs1.20 increase. Electricity consumption in June was slightly lower than the same month last year, with 13,066 billion units used compared to 13,310 billion units. The primary driver of the higher fuel costs was the near doubling of Regasified Liquefied Natural Gas (RLNG) prices, which reached Rs35 per unit versus Rs16 per unit in June 2025. Read also: Pakistan Finance Minister Heads to Washington for Trade Pact Talks Background The CPPA attributed the surge in RLNG costs to purchases from the international spot market at short notice, triggered by supply disruptions from the US-Iran war. Earlier this month, the Oil and Gas Regulatory Authority (Ogra) notified a roughly 15% increase in RLNG prices for distribution by the Sui gas companies. Despite hydropower—a zero-fuel-cost source—contributing 39% of the grid supply, and local coal, gas, and nuclear power collectively providing 30%, expensive imported fuels still drove up overall costs. Furnace oil-based plants generated power at Rs52 per unit and diesel at Rs57 per unit, though their combined share was less than 1% of the grid supply. Why It Matters For consumers already facing high inflation, this adjustment would add financial strain to monthly electricity bills. The reliance on imported fuels, even when domestic alternatives are abundant, highlights structural inefficiencies in Pakistan's energy mix and vulnerability to global price shocks. The situation underscores the tension between cheap domestic energy sources—like hydropower, nuclear, and local coal—and the continued use of costly imported fuels, which account for a disproportionate share of fuel costs despite low generation volumes. What's Next Nepra's public hearing on July 29 will determine whether to approve the Rs1.20 per unit increase. If accepted, the adjustment will be applied to August bills for all consumers. The CPPA's data may also prompt broader debate on energy policy, including efforts to reduce reliance on imported fuels and increase the share of domestic, low-cost generation.