The Punjab government has begun lining up high-speed diesel (HSD) for the 1,180MW Bhikki power plant in Sheikhupura, where power made from diesel is estimated at about Rs74 per unit. Quaid-e-Azam Thermal Power (Private) Limited (QATPL), the provincial government-owned company that runs the plant, has invited oil marketing companies to prequalify for a three-year diesel supply contract.
Why diesel is being lined up
The Bhikki power plant normally runs on imported re-gasified liquefied natural gas (RLNG)—gas that arrives as liquid and is turned back into pipeline gas—and keeps diesel as a backup fuel. Under the planned arrangement, suppliers would deliver HSD only when needed, with performance reviewed each year. QATPL describes the facility as among the country’s more efficient plants, with efficiency above 61% in combined-cycle mode on RLNG.
What the tender requires
According to the tender notice, applications must go only through the Punjab e-Procurement System by 11:00 AM on 24 November 2026, with bids opened half an hour later. The contract would cover three years of as-needed supply rather than a fixed continuous offtake.
Retail diesel was cut to Rs391.52 a litre on 4 November 2026 (from Rs395.20 after an earlier revision from Rs402.96). At the prior Rs395.20 pump rate, rough estimates put the fuel cost of each unit generated on diesel near Rs74—well above typical gas-based generation.
Cost gap and pressure on bills
Fuel-cost figures linked to CPPA-G data for September 2026, published through NEPRA (Pakistan’s power regulator), show diesel-based electricity at Rs62.14 per unit in fuel charges alone, compared with Rs39.74 per unit for RLNG. That gap of about Rs22.40 per unit in that month’s fuel data underlines how much more expensive diesel generation can be than RLNG.
Fuel costs are passed through to consumers via monthly fuel charge adjustments. Officials and industry practice mean that if more expensive diesel-fired output reaches the grid, the adjustment on household and commercial bills can rise. The tender itself does not say how much diesel the Bhikki power plant will burn, only that backup fuel will be available when required.
Timeline: what has happened so far
- May 2018: The Bhikki plant began commercial operations.
- September 2026: NEPRA-published fuel data put diesel generation at Rs62.14 per unit in fuel charges and RLNG at Rs39.74.
- Recent price revision: Retail diesel moved to Rs391.52 a litre on 4 November 2026, after Rs395.20 and an earlier period above Rs401.
- By 24 November 2026, 11:00 AM: Oil marketing companies must file prequalification applications on the Punjab e-Procurement System; opening follows 30 minutes later.
Aasan alfaaz mein
Punjab sarkar Sheikhupura ke Bhikki power plant ke liye backup diesel ka intizam kar rahi hai. Ye plant aksar RLNG gas par chalta hai, lekin zarurat par diesel bhi use ho sakta hai. Diesel se bani bijli ka andaza lagbhag 74 rupay per unit hai, jo gas se mehngi hai. Agar zyada diesel wali bijli grid par aayi to mahine ki fuel adjustment bill thoda bhari ho sakti hai.
