Gas Prices in Pakistan to go Up for Fertilizer, CNG, Cement, Power Sectors
Ibn-e-Ameer
Gas Prices in Pakistan have not been too much high compared to electricity prices. But with the passage of time, they are going up. Along with domestic consumers, gas prices are likely to go up for fertilizer, CNG, and power sectors.
Following an increase in prices, urea may become more expensive for the farmers.
The prices of urea and DAP have already witnessed a hike manifold, becoming unaffordable for the farmers.
If the government increases the prices of gas for fertilizer, higher prices will add misery for the farmers.
Gas Prices in Pakistan 2022
Price Increase for Fertilizer
The government is likely to increase gas prices for fertilizer manufacturers.
The Engro fertilizer plant is getting cheaper gas to produce urea. The government is likely to increase the price of gas from Rs 117 to Rs 140 per mmbtu for the Engro plant.
The price of gas for other fertilizer manufacturers may also go up from the existing Rs 302 to Rs 420 per mmbtu.
General Industry
The government is also providing gas to general industry (non-export) at higher rates.
The industry is receiving gas at Rs 1054 per mmbtu which may witness a massive increase to Rs 1650 per mmbtu.
Captive Power Plants
Captive power plants believed to be most inefficient have been receiving gas at discounted rates.
The government had denied gas supply to power plants but captive power plants continue receiving gas at discounted rates.
Now government plants to increase gas prices for captive power plants owned by non-export industry 1087 to Rs 1650 per mmbtu.
The captive power plants in the export-oriented sector may also increase gas prices from Rs 852 to Rs 1450 per mmbtu.
Cement
The cement sector is also likely to face a hike in the price of gas. It may go up from Rs 1277 to Rs 2321 per mmbtu.
If the government okays proposed an increase in gas prices for the cement sector, it will lead to a rising price of cement to double rates.
This will be a setback for the construction industry due to a massive hike in the prices of gas for cement manufacturing plants.
