Pakistan Avoids $38 Million in Costs Amid Hormuz Crisis

Pakistan's power division reported that the country avoided around $38 million in additional power costs in August by increasing its reliance on domestic energy sources. The disruption to LNG supplies, caused by the ongoing US-Iran conflict, pushed spot cargo prices to $23-$25 per million British thermal units.

The power sector would have faced significant costs if it had relied solely on imported fuels, including regasified LNG. Instead, 72% of electricity generation in August came from domestic sources such as hydropower, local coal, nuclear energy, and locally produced gas.

Power Minister Awais Leghari stated that the measures helped bring down fuel cost adjustments for August to Rs1.73 ($0.0062) per unit from Rs2.0851 ($0.0075) in July.