ISLAMABAD – The Ministry of Industries and Production has recommended uninterrupted gas supply to all SNGPL-based fertilizer plants and full gas volume pressure to Fauji Fertilizer Bin Qasim Limited till March 31, 2024, for meeting urea demand for Rabi season.
As per normal routine, fertilizer plants and other industries are supplied gas till October 15 to meet the excessive requirements of domestic consumers during the winter season.
As per the media reports, the Ministry has formulated a set of recommendations after due consultations with the Ministries of Finance, Petroleum and National Food and Security. The same has been forwarded to the Economic Coordination Committee of the Cabinet for further consideration.
The Petroleum Division will prepare a proposal on uniform gas pricing with either full RLNG or blend and submit a summary to the ECC afterwards.
Due to the absence/depletion of the system, RLNG may be supplied to Fatima Fertilizer, (Sheikhupura and Agri-tech in the short term at the OGRA’s prescribed price.
The differential on account of the provision of RLNG to SNGPL-based plants may be built into the revenue requirements of SNGPL and may be recovered from other consumers.
Immediate import of 200 to 500 KMT urea has also been suggested.
The subsidy on imported fertilizer is suggested to be borne by provinces.
It is recommended that the ECC constitute a committee to get justification from manufacturers on an increase in minimum retail price.
