Fauji Fertilizer Bin Qasim Ltd (PSX: FFBL) has increased urea prices by Rs. 1,350 per bag.
According to JS Global, Fauji Fertilizer Bin Qasim Ltd (FFBL) has increased urea prices by Rs. 1,350/bag to pass on the increase in gas prices. FFBL’s new urea price stands at Rs. 5,331/bag while FFC and EFERT urea prices stand at Rs. 3,597/bag and Rs. 3,767/bag.
It bears mentioning that the dealer’s margin has increased by around Rs. 100/bag. End-user selling price stands at Rs. 5,331/bag for FFBL.
This comes after the Economic Coordination Committee (ECC) of the Cabinet last week approved up to 35.13 percent increase in gas prices to fulfill another condition of the International Monetary Fund.
The petroleum division at the ECC meeting proposed to increase feed and fuel gas prices for Engro Fertilizer and Fauji Fertilizer Bin Qasim plant to Rs. 760/MMBtu and Rs. 1,750/MMBtu, respectively. The effective date for the revised gas tariff for Engro Fertilizer (PSX: EFERT) was set for 1st March 2024.
In an earlier statement, EFERT welcomed the removal of subsidies for fertilizer manufacturers that get their gas from the SNGPL network, which represents 60 percent of all fertilizer manufacturing capacity.
EFERT said the battle is half won and called for removal of the subsidy for the remaining 40 percent of the fertilizer manufacturers who get their gas from Mari Petroleum at a cheap rate of Rs. 580 per MMBtu.
