Nepra reviews proposal for electricity price hike and petrol price drop

The National Electric Power Regulatory Authority (Nepra) is currently reviewing a proposal to raise electricity prices by Rs3.49 per unit for a month. This potential increase is due to fuel cost adjustments, with the Central Power Purchasing Authority (CPPA) requesting the adjustment, citing a shift in electricity generation sources in April. The proposed adjustment, if approved, could lead to an additional cost of Rs34 billion for consumers. In April, electricity generation primarily relied on hydel power, local coal, local gas, imported LNG, and nuclear fuel, with no dependence on furnace oil and diesel.

On the other hand, there are reports indicating a possible decrease in petrol prices by June 1. Sources suggest a reduction of around Rs6.50 to Rs7.50 for both petrol and diesel. This anticipated decrease is linked to recent drops in global market prices, with petrol prices falling by 3.25 dollars and diesel prices by 2.10 dollars per barrel in the last 15 days. Prior to this, prices had decreased by 8.7 dollars and 4.3 dollars per barrel. Presently, petrol is priced at Rs273.10 per liter, while diesel costs Rs274.08 per liter.

While electricity prices may see an increase, there is hope for relief in petrol prices with an expected decrease. Consumers should stay informed about these developments to manage their expenses effectively.