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Pakistan Power Crisis: Load-Shedding, Tariff Hikes Likely as LNG Supply Drops

B00651

Pakistan Power Crisis: Load-Shedding, Tariff Hikes Likely as LNG Supply Drops

Pakistan faces a growing Pakistan power crisis as summer demand rises. Officials expect daily load-shedding of two to three hours. In addition, the government may increase electricity tariffs to manage costs.
Moreover, authorities are planning a mixed strategy. This includes power cuts, conservation measures, and higher charges. Therefore, consumers should prepare for tighter energy conditions in the coming months.

Fuel Shortage Raises Power Concerns

Officials say LNG supply may drop to near zero from next month. This fuel currently supports over one-fifth of power generation. As a result, the system will lose a major energy source.
In addition, coal supply may also remain limited. Together, LNG and coal provide about 30 percent of electricity. Their shortage will increase pressure on alternative fuels.Consequently, the government may rely more on furnace oil. However, this option is
expensive. For example, furnace oil generation costs around Rs35 per unit, much higher than LNG or coal.
Officials also confirmed that high-speed diesel will not be used. It costs too much and remains essential for transport and agriculture. Therefore, authorities must balance cost and supply carefully.

Load-Shedding and Tariffs Likely

Due to these challenges, the government may enforce regular power cuts. Load-shedding could average two to three hours daily. However, the duration may increase if shortages worsen.
At the same time, fuel costs may rise sharply. Officials estimate an increase of Rs10 to Rs12 per unit. This change will impact households and industries alike.
Meanwhile, gas supply to power plants will drop sharply from April. Supplies may fall to just 80 mmcfd. This decline will further limit electricity generation capacity.
In addition, internal issues are making the situation worse. Disputes involving Pakistan Railways are affecting coal transport. This problem may disrupt up to 1,800MW of generation.
Officials have raised the issue with Awais Leghari and Hanif Abbasi. They hope quick action will stabilize supply. Otherwise, the power crisis could deepen further.

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