Following increase in gas tariffs, the domestic fertiliser manufacturers have raised urea price by Rs 159 per bag. Recently, the federal government had increased gas tariff for feedstock by 63 percent for old fertilizer plants while 67 percent for new plants, besides 23 percent for power generation gas supply to fertilizer manufacturers with effect from September 1, 2015. As the gas is the basic raw material for urea production, accordingly the domestic fertilizer manufacturers have announced increase in urea price by Rs 159 per 50-kg bag.
“Yes, we have increased urea price by Rs 159 per bag and with current surge it will be sold at Rs 1,990 per 50-kg bag in the domestic market,” said Rohail Muhammad CEO Engro Fertiliser. Fauji Fertiliser Company increased urea prices on Wednesday, while following the FFC; the same increase has been announced by Engro Fertiliser on Thursday.