Electricity rates may rise by Rs3.49 per unit for a month

The National Electric Power Regulatory Authority (Nepra) is set to consider an increase in electricity prices of Rs 3.49 per unit for one month, driven by fuel cost adjustments.

The hearing on the application, submitted by the Central Power Purchasing Authority (CPPA), is scheduled for today. If approved, this adjustment will impose an additional burden of Rs34 billion on consumers.

The CPPA’s request outlines the fuel cost adjustment for April, noting that electricity was not generated using furnace oil and diesel during that month.

Instead, hydel sources accounted for 22.96% of the electricity generation, while local coal contributed 10.19%.

Local gas and imported LNG were responsible for 11.28% and 24.97% of the electricity production, respectively. Nuclear fuel also played a significant role, contributing 23.64% to the overall generation.

In parallel, there is a potential relief for consumers as petrol prices are expected to decline on June 1, according to sources familiar with the development.

The prices of petrol and diesel may decrease by approximately Rs6.50 to Rs7.50 per liter. This anticipated reduction follows a recent decrease in global market prices for petrol and diesel by $3.25 and $2.10 per barrel, respectively, over the past 15 days. In the previous 15 days, the prices had dropped by $8.70 and $4.30 per barrel, respectively.

As of now, the current prices stand at Rs 273.10 per liter for petrol and Rs 274.08 per liter for diesel.

The expected price reduction will provide some respite to consumers, balancing the potential increase in electricity costs due to fuel adjustments.

The outcome of Nepra’s decision and the official announcement regarding fuel prices will be crucial for the economic outlook of the country in the coming weeks.

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