Urea prices would rise Rs 200 per bag if the tariff structure of gas companies was revised upward, warned the fertiliser industry.

According to the Company Stakeholders,Public gas utilities- Sui Northern Gas Pipelines Limited (SNGPL) ans Sui Southern Gas Company (SSGC)- have filed petitions with the regulator for determining gas prices for financial year 2020-21.

SNGPL has sought a tariff increase of about 100%(Rs622 per units) while SSGC has sought an increase 20% (Rs85 per units) to meet revenue requirements for the upcoming financial year.

Although the proposal was not implemented by the government at the time, urea price will go up approx Rs 213 per bag if the government went ahead to match the recommended gas price hike, they added.

Furthermore, according to the stakeholders, recent budgetary amendments to tax laws have increased challenges for the fertiliser industry.

© Pakistan Press International, source Asianet-Pakistan