Government to Formulate Gas Pricing Plan for Fertilizer Industry


In a bid to address unjustified price hikes in fertilizers and ensure fair treatment for farmers, the government is working on a comprehensive gas pricing plan for the fertilizer sector. Recent discussions in the Economic Coordination Committee (ECC) highlighted the need for a holistic approach to stabilize fertilizer prices, emphasizing the importance of passing on subsidized gas benefits to farmers.

The ECC underscored the necessity of cooperation between relevant ministries to develop a sustainable gas pricing strategy for the fertilizer industry. It was noted that despite receiving substantial funds from farmers through gas infrastructure development cess, fertilizer manufacturers did not pass on the corresponding benefits by reducing urea prices.

The Ministry of Industries and Production stressed the importance of eliminating distortions in gas pricing to ensure that subsidy benefits reach farmers. However, due to financial constraints, the Finance Division expressed reservations about providing further subsidies to bridge price differentials.

The ECC’s decision to extend operations for SNGPL-linked fertilizer plants and the ongoing discussions regarding gas supply prices reflect the government’s commitment to addressing pricing issues in the fertilizer sector.

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