Gas Supply: Govt puts fertilizer at par with export sector

Ibn-e-Ameer

The government has changed the gas supply merit order for a continuous supply of gas to the fertilizer sector.

  Economic Coordination Committee has taken a decision to bring fertilizer sector in part with domestic and export sector to supply gas.

Ministry of Industries and Production informed the economic coordination committee (ECC) of the cabinet regarding gas supply to the fertilizer sector.

 It said that the price for fertilizer had spiked in the international market.

Govt increases subsidy on Fertilizers for Rabi Season

It proposed the economic decision-making body to revise the gas supply priority order with reference to the fertilizer sector keeping in view the food security issue and high prices in the international market.

It recommended placing the fertilizer sector at par with domestic and commercial/exporters, as essential import substitution sectors.

Industries ministry proposed that government may confirm gas supply from OGDCL and SNGPL. System to fertilizer plants, during the current Rabi Season 2021-22.

It will ensure immediate availability of the Urea Fertilizer and saving of foreign exchange, in case of import or Urea from the abroad.

Industries ministry informed that the Technical Advisory. Sub-Committee of the ECC had also deliberated on the case in its meeting held on December 16, 2021.

The sub-body of ECC had also recommended the proposal for approval by the ECC. It further recommended reviewing the decision in March 2022.

The ECC agreed to the recommendation of the Technical Advisory Sub Committee of the ECC.

.The Economic Coordination Committee (ECC) of the Cabinet considered the summary regarding the “Gas Supply Priority Order” and approved to place the sector at par with the export sector.

It further decided that the Ministry of Industries and Production shall, in consultation with the Petroleum Division, submit for the reconsideration of the ECC in March 2022, a review. 

The fertilizer sector has been receiving subsidized gas. However, the fertilizer industry had looted the farmers. Earlier, it had received around Rs 60 billion GIDC from the farmers but did not pay to the government. Now, this industry had hoarded urea and DAP to pocket billions.

Now, they were going to get an uninterrupted gas supply during the winter season in order to meet the shortfall of urea in the country.