As Pakistan approaches the summer months, the demand for energy is intensifying. Currently, the domestic natural gas supply to the power sector stands at approximately 85-90 million cubic feet per day (mmcfd). However, officials anticipate that this figure will double by the end of April 2026, potentially reaching around 160-170 mmcfd.
On April 14, 2026, Power Minister Awais Ahmad Khan Leghari highlighted the critical need for additional gas supplies, warning that without them, electricity tariffs could rise significantly due to increased fuel costs. An additional 20-25 mmcfd of gas could be redirected from the compressed natural gas (CNG) sector to help meet the growing demand.
The urgency of the situation is underscored by the fact that the summer peak demand typically rises to between 27,000 and 28,000 megawatts (MW). In recent days, the government has already implemented at least two hours of loadshedding, indicating the strain on the current energy infrastructure.
Fertiliser plants may face interruptions in gas supply and could be forced to operate on an alternate basis. Meanwhile, the price of furnace oil has more than doubled between February and early April 2026, further complicating the energy landscape.
Current stocks of furnace oil exceed 500,000 tonnes, which is sufficient to meet full requirements for more than 35 days. However, the fuel cost gap between re-gasified liquefied natural gas (RLNG) and high-speed diesel remains significant, ranging from Rs20-21 to Rs50-54 per unit.
The fuel cost adjustment (FCA) for February was recorded at Rs1.42 per unit, and it is estimated that this figure could have reached around Rs2 without the utilization of furnace oil and RLNG. This situation has prompted discussions among key stakeholders.
General Zafar Iqbal has led the National Coordination and Management Council to address the electricity shortages and ensure maximum supply to economic sectors at affordable rates. This collaborative effort is crucial as the country navigates its energy challenges.
Leghari remarked, “It is a choice between the uproar of 7 million gas consumers or 30 million power consumers,” emphasizing the delicate balance the government must maintain in managing energy resources.
As the situation develops, the reliance on liquefied petroleum gas (LPG) as an alternative fuel for domestic use has surged, with prices more than doubling the rates set by the Oil and Gas Regulatory Authority (Ogra).
Without RLNG, approximately 5,000 MW of efficient plants in Punjab could become either redundant or costly to operate on diesel. The coming weeks will be critical in determining how effectively Pakistan can manage its natural gas supply and mitigate the impacts on consumers and the economy.