Punjab Arranges Diesel Supply for Bhikki Power Plant
The Punjab government has initiated measures to secure high-speed diesel (HSD) for its 1,180MW Bhikki power plant in Sheikhupura. This move aims to ensure continuous power generation despite the plant primarily relying on re-gasified liquefied natural gas (RLNG).
Diesel as Backup Fuel at Bhikki Plant
Operated by Quaid-e-Azam Thermal Power (Private) Limited (QATPL), a Punjab government entity, the Bhikki plant uses RLNG as its main fuel source. However, diesel serves as a contingency fuel, enabling operations during RLNG shortages or supply disruptions. The provincial government has now invited oil marketing companies to prequalify for a three-year diesel supply contract, with bids due by November 24, 2026.
Cost Implications of Diesel-Based Electricity
Electricity generated from diesel is considerably more expensive than that produced using RLNG. Current diesel prices stand at Rs. 395.20 per litre, pushing the cost of diesel-powered electricity generation to roughly Rs. 74 per unit. NEPRA data indicates that fuel charges for diesel-generated electricity reached Rs. 62.14 per unit in September 2026, compared to Rs. 39.74 for RLNG-based power. Since fluctuations in fuel prices are passed on to consumers via monthly adjustments, an increased reliance on diesel could add pressure on electricity tariffs.
Applications for the diesel supply tender must be submitted through the Punjab e-Procurement System by 11:00 AM on November 24, 2026, with bid openings scheduled for 30 minutes later.
Significance for Pakistan’s Energy Sector
This development highlights ongoing challenges in Pakistan’s energy supply, particularly the need for flexible fuel sources to maintain grid stability. For Pakistani consumers, higher electricity production costs linked to diesel usage may translate into steeper electricity bills, especially if RLNG supplies remain constrained.
Sabica Tahira, a content writer covering business and technology, noted, “Diesel remains a crucial backup for power plants amid fluctuating gas supplies, but it comes at a notable cost.” As Pakistan continues to expand its power generation capacity, optimizing fuel mix and managing costs will remain key priorities.
