Power costs may climb to Rs100 per unit as plant seeks diesel supplies
The 1,180-megawatt plant in Sheikhupura has invited oil companies to supply high-speed diesel as a backup fuel when imported gas is unavailable.
Bhikki power plant seeks diesel suppliers
Quaid-e-Azam Thermal Power (Private) Limited (QATPL), a Punjab government-owned company, has issued a tender inviting oil marketing companies (OMCs) to apply for diesel supply. The company operates the Bhikki power plant and plans to use diesel whenever the facility cannot run on imported re-gasified liquefied natural gas (RLNG).
Under the proposed arrangement, the selected supplier will receive a three-year contract. However, QATPL will review the supplier’s performance every year and purchase diesel according to the plant’s needs.
Interested oil marketing companies must submit their applications through the Punjab e-Procurement System by 11:00 am on November 24, 2026. The applications will be opened 30 minutes after the submission deadline.
Diesel generation could cost Rs74 per unit
The current diesel price is Rs395.20 per litre after a reduction from Rs402.96. The price had also crossed Rs401 per litre last week.
At the current rate, producing electricity at the Bhikki plant using diesel could cost around Rs74 per unit in fuel expenses alone. This is significantly higher than the cost of generating electricity through RLNG.
The difference in fuel costs could create additional pressure on the power sector. Consumers may also face higher electricity bills if the plant produces more electricity using diesel.
Diesel power is more expensive than RLNG
According to September 2026 fuel cost figures released by the Central Power Purchasing Agency-Guarantee (CPPA-G) and published by the National Electric Power Regulatory Authority (NEPRA), diesel-based electricity cost Rs62.14 per unit in fuel expenses.
In comparison, electricity generated using RLNG cost Rs39.74 per unit during the same period. This shows that diesel-based generation is considerably more expensive than gas-based power production.
Electricity consumers already pay changes in fuel costs through monthly fuel charge adjustments. Therefore, greater use of diesel could increase the amount added to monthly electricity bills.
Bhikki plant supplies 1,180MW to national grid
The Bhikki power plant started commercial operations in May 2018 and has a generation capacity of 1,180MW. It supplies electricity to Pakistan’s national grid and is considered an important part of Punjab’s power generation system.
QATPL describes the facility as one of Pakistan’s most efficient power plants. According to the company, its efficiency exceeds 61% when operating on RLNG in combined-cycle mode.
Using diesel as a backup fuel may help the Bhikki plant continue producing electricity when RLNG is unavailable. However, diesel generation is much more expensive and could increase the financial burden on electricity consumers.
The actual impact will depend on how often the plant uses diesel and how much electricity it produces with this fuel. Consumers may face additional pressure if expensive diesel-based generation becomes more common.
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