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Power Generation Falls in January 2025 Despite 22% Decline in Fuel Cost

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Legal Editorial Desk
Power Generation Falls in January 2025 Despite 22% Decline in Fuel Cost
Pakistan’s power generation decreased by 2 percent on a year-on-year (YoY) basis to 8,152 GWh in January 2025, compared to 8,314 GWh during the same month of the previous year. The reduction in generation is due to decreased overall demand, due to drop in temperatures and an increase in solarization, according to Arif Habib Limited (AHL). In 7MFY25, it decreased by 3 percent to 74,794 GWh compared to 77,296 GWh in 7MFY24. Hydel generation decreased by 6 percent YoY arriving at 866 GWh as compared to 924 GWh in January 2024. Nuclear-based power generation increased by 26 percent. Power generation from imported coal increased by 21 percent YoY. Meanwhile, power generation from local coal decreased by 8 percent YoY to 1,269 GWh. During January 2025, fuel cost for power generation decreased by 22 percent YoY but up 19 percent MoM to an average of Rs. 10.79/unit, compared to an average cost of Rs. 13.79/unit in January 2024 and Rs. 9.09/unit in December 2024, respectively. Furnace Oil was the priciest with a cost of Rs. 30.44 per unit in January 2025 while RLNG was the second priciest during the same period. In 7MFY25, power generation cost decreased by 2 percent to Rs. 8.66/unit.
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