Bhikki Power Plant Seeks Diesel Backup, Fuel Cost Could Reach Rs 74 per Unit
Punjab's 1,180 MW Bhikki plant is prequalifying suppliers for a three-year high-speed diesel contract as backup fuel, with diesel-based generation far costlier than RLNG.
The Punjab government-owned 1,180 MW Bhikki power plant in Sheikhupura is moving to secure high-speed diesel (HSD) supplies as a backup fuel, with estimates suggesting diesel-based generation could cost around Rs 74 per unit in fuel alone at current prices.
Quaid-e-Azam Thermal Power (Private) Limited (QATPL), which operates the plant, has invited oil marketing companies to prequalify for a three-year diesel supply contract, according to a tender notice. The agreement would include an annual performance review, with fuel delivered on an as-needed basis. Applications must be submitted through the Punjab e-Procurement System by 11:00 AM on November 24, 2026, and will be opened 30 minutes later.
The Bhikki plant normally runs on imported re-gasified liquefied natural gas (RLNG), with diesel retained as its fallback fuel. After the latest revision, diesel now costs Rs 395.20 per litre, down from Rs 402.96 and below the Rs 401 mark crossed the previous week. At that rate, rough calculations place the fuel cost of each diesel-generated unit at approximately Rs 74.
That figure is significantly higher than gas-based generation. According to fuel data from CPPA-G for September 2026 published by NEPRA, diesel-based electricity carried a fuel cost of Rs 62.14 per unit, compared with Rs 39.74 for RLNG. Because fuel costs are passed through to consumers via monthly fuel charge adjustments, greater reliance on diesel generation places additional pressure on electricity bills.
The plant began commercial operations in May 2018. QATPL describes it as one of the country's most efficient power facilities, achieving more than 61% efficiency in combined-cycle mode when running on RLNG. The diesel tender is intended to ensure backup supply is available when gas volumes fall short, though any sustained use of the costlier fuel would be reflected in consumer tariffs through the adjustment mechanism.
