The Punjab government is arranging diesel supplies for its 1,180 MW Bhikki power plant, even though electricity generated using the fuel could cost around Rs. 74 per unit at current prices.

Quaid-e-Azam Thermal Power (Private) Limited (QATPL), the Punjab government-owned company operating the plant in Sheikhupura, has invited oil marketing companies to prequalify for supplying high-speed diesel (HSD), according to a tender notice published on its website.

The Bhikki plant primarily runs on imported re-gasified liquefied natural gas (RLNG), while diesel is available as an alternative fuel.

What the tender says

QATPL is seeking suppliers under a three-year contract, with an annual performance review. Diesel deliveries will be made whenever the plant requires them rather than under a fixed supply schedule.

Interested oil marketing companies must submit their applications through the Punjab e-Procurement System by 11:00 AM on November 24, 2026. The bids will be opened at 11:30 AM the same day.

Diesel power could cost Rs. 74 per unit

Diesel is currently priced at Rs. 395.20 per litre following the latest reduction from Rs. 402.96.

At this price, estimates suggest that electricity generated by the Bhikki plant using diesel could cost around Rs. 74 per unit in fuel alone.

The figure is significantly higher than the cost of generating electricity on RLNG. According to September 2026 fuel cost data published by NEPRA, diesel-based generation cost Rs. 62.14 per unit, compared with Rs. 39.74 per unit for RLNG.

The higher cost of diesel generation could also put additional pressure on electricity bills because fuel costs are passed on to consumers through monthly fuel charge adjustments.

The Bhikki power plant began commercial operations in May 2018. QATPL describes it as one of Pakistan’s most efficient power plants, reporting efficiency of more than 61 percent in combined-cycle mode when operating on RLNG.