Govt Cuts Electricity Tariffs, Hikes Fuel Levy

The government has decided to reduce electricity tariffs by Rs7.41 per unit. To fund this, it will collect an extra Rs58 billion by increasing the Petroleum Development Levy (PDL) from Rs60 to Rs70 per litre on petrol and diesel. This move aims to cross-subsidise power bills and provide temporary relief to consumers.

During a hearing, NEPRA – National Electric Power Regulatory Authority reviewed a government petition seeking a Rs1.71 per unit tariff cut for three months. NEPRA’s chairman said the immediate relief would be Rs5.03 per unit, with the rest applied through the quarterly tariff adjustment (QTA).

@Ministry of Energy-Power Division, Government of Pakistan explained that the new funding plan is part of a broader effort to manage the power sector’s circular debt. This includes savings from renegotiated deals with Independent Power Producers (IPPs) and talks with banks.

The total subsidy allocation is now Rs324 billion. However, lifeline consumers will not benefit.

Industrial voices like Aamir Sheikh raised concerns about unclear figures and the timeline for relief. They urged clear guidance, especially for planning export sales.

This plan reflects the government’s approach to balance short-term relief with long-term financial pressures in the energy sector.