Fauji Fertilizer Company Ltd (FFC) has increased urea prices by Rs. 171 per bag.
According to an update by JS Research, the new prices are in full effect starting today.
FFC’s new urea price stands at Rs. 3,767 per bag, while EFERT and FFBL urea prices stand at Rs. 3,767/bag and Rs. 5,331/bag, respectively.
The upward revisions in fertilizer rates come after the government recently withdrew the subsidy for fertilizer manufacturers that get their gas from the SNGPL network, which represents 60 percent of all fertilizer manufacturing capacity.
The government has increased the feedstock prices from Rs. 580/mmbtu to Rs. 1,597/mmbtu, almost a 300 percent increase in the cost of producing fertilizer.
Top members of the industry have urged the government to do the same with the remaining 40 percent of the fertilizer manufacturing capacity that is on the Mari network, which is still at the subsidized price of Rs. 580/mmbtu.