The Punjab government has started arranging high-speed diesel (HSD) supplies for its 1,180MW Bhikki power plant in Sheikhupura, with electricity generated using diesel estimated to cost around Rs. 74 per unit.
Quaid-e-Azam Thermal Power (Private) Limited (QATPL), the Punjab government-owned company operating the plant, has invited oil marketing companies to prequalify for a three-year diesel supply contract. The plant primarily operates on imported re-gasified liquefied natural gas (RLNG), while diesel is maintained as a backup fuel. Suppliers will provide fuel on an as-needed basis, with annual performance reviews.
According to the tender notice, applications must be submitted through the Punjab e-Procurement System by 11:00 AM on November 24, 2026. The bids will be opened 30 minutes later. Diesel currently costs Rs. 395.20 per litre, making electricity generation significantly more expensive than gas-based power.
NEPRA data shows that diesel-based electricity cost Rs. 62.14 per unit in fuel charges in September 2026, compared with Rs. 39.74 per unit for RLNG. Since fuel costs are passed on to consumers through monthly fuel price adjustments, increased diesel-based generation could put additional pressure on electricity bills.
