Engro Fertilizers Limited (PSX: EFERT) has announced a massive increase of Rs. 550 per bag in urea prices with other manufacturers expected to follow suit.
According to JS Global, EFERT has increased urea price by Rs. 550 per bag, effective from 31 March 2023. After this hike, Engro Urea stands at Rs. 2,994 per bag.
This price increase comes after the government 1.5 months ago announced a gas price hike for the fertilizer sector.
As per market communication to dealers, the price of urea has been increased to pass on the additional costs resulting from rising energy bills, the devaluation of the rupee, and the uncertain economic situation.
Since gas prices were not explicitly notified for Mari Petroleum Company Limited (PSX: MPCL) network fertilizer companies, the price increase for urea was on hold due to a lack of clarity. Fatima Fertilizers Company Limited (PSX: FATIMA) and Fauji Fertilizer Company Limited (PSX: FFC) are the other two MPCL network fertilizer companies among which FATIMA announced a price hike of around Rs. 400 per bag whereas FFC hasn’t announced any rate hike yet.
To recall, Fauji Fertilizer Bin Qasim Limited (PSX: FFBL) had increased urea prices by Rs. 400 per bag on February 16th, 2023, two days after the gas price hike as it runs on the SSGC network.
