ISLAMABAD: After Prime Minister (PM) Shehbaz Sharif’s announcement of maintaining fuel prices and shifting the benefit to electricity consumers, everyone is wondering how much electricity prices are expected to drop in the coming weeks.
The government plans to cut the electricity tariff by Rs8 per unit, a few days after slashing the net metering benefits for new solar panel owners.
The current tariff structure includes around nine components, and a review of these could potentially reduce electricity rates by Rs10 to Rs12 per unit. However, the International Monetary Fund (IMF) has reportedly rejected the removal of taxes from electricity bills due to the Federal Board of Revenue’s (FBR) low recovery rate, and the provinces are unwilling to abolish electricity duty. As a result, the expected reduction is approximately Rs8 per unit.
A federal minister has revealed the Prime Minister intends to announce the tariff reduction on March 23, 2025, to provide electricity to the industrial sector at regionally competitive rates.
The current base price of electricity is Rs35 per unit, excluding taxes and surcharges. Consumers have already received some relief through negative adjustments in the Quarterly Tariff Adjustment (QTA) and Fuel Charge Adjustment (FCA).
No change in fuel prices for the next 15 days
It was expected that the government may reduce the petrol prices in Pakistan by up to Rs14 per lire in the upcoming fortnightly review.
However, much to the surprise of the citizens, the premier has instead announced relief in electricity costs aimed at achieving a meaningful reduction in electricity tariffs.
This step is among several others that will lead to a significant reduction in electricity prices,” he added.
“A comprehensive and effective strategy is being prepared under which a package is being developed to reduce electricity prices. The details are being finalised,” the Prime Minister said.
