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.

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In response to the current gas crisis, Sui Northern Gas Pipelines Limited (SNGPL) has implemented measures to restrict gas supply to just six hours a day. This limitation means that consumers will now receive gas primarily during breakfast and dinner hours, a significant reduction in availability that has raised concerns among households and businesses alike. The latest disruption has largely been linked to problems in liquefied natural gas (LNG) imports, which have been a critical component of the country’s energy strategy.

The rising demand for electricity during the summer months typically peaks at around 27,000-28,000 megawatts (MW), a stark contrast to the current peak demand of less than 14,000 MW. This discrepancy highlights the urgent need for the government to address the energy supply challenges. In recent days, the government has already implemented at least two hours of loadshedding, and this is expected to increase as the summer progresses.

Fuel cost adjustments (FCA) have also been a topic of concern, with the FCA for February recorded at Rs1.42 per unit. However, estimates suggest that this could rise to around Rs2 per unit in April if the situation does not improve. The cost of furnace oil, another energy source, has more than doubled between February and early April, further complicating the energy landscape.

Minister Leghari emphasized the difficult choices faced by the government, stating, “It is a choice between the uproar of 7 million gas consumers or 30 million power consumers.” This statement underscores the delicate balance the government must maintain as it navigates the competing demands of different sectors.

The government has also been warned that the gap in energy supply creates opportunities for smuggling, which could undermine efforts to stabilize the energy market. As the situation develops, the government is expected to enforce average daily loadshedding of two to three hours, alongside conservation measures to mitigate the impact on consumers.

With 500,000 tonnes of furnace oil stocks available, the government has some resources at its disposal to manage the crisis. However, the effectiveness of these measures remains to be seen as the country grapples with the dual challenges of rising demand and supply shortages. The outcome of these developments will be critical for both the energy sector and the broader economy.

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