This will be on top of the annual closure of gas supplies to the fertiliser sector for about three months during winter and a cost of about $550 million on import of about 1.4 million tons of fertiliser. The government will then provide between Rs35 billion and Rs50 billion in subsidy to maintain the existing prices during the next Rabi season, a senior official told Dawn on Wednesday.
The ECC had approved an increase in natural gas prices for all domestic consumers by 15 per cent, 18pc for industrial consumers, 36pc for power sector, including Wapda, KESC and independent power producers and about 96pc for fertiliser feedstock. The final decision was left to the prime minister.
The prime minister was advised against allowing notification of the increased gas prices in view of a case pending in the Sindh High Court.
Sources said that fertiliser plants had been informed by Petroleum Minister Dr Asim Hussain that they would be given gas supplies for 15 days on alternative basis with effect from August 1.
That would mean some fertiliser plants would get gas for first 15 days of the month and then close down for 15 days to divert same quantities to another lot of plants for remaining 15 days.
The fertiliser industry is contesting the gas curtailment which it claims had been reduced from about 400 million cubic feet per day (MMCFD) to less than 150MMCFD even before the usual gas management plan for winter was in violation of their contracts for guaranteed supplies.
Owing to gas curtailment, the country is estimated to require an import of fertiliser about 1.1 million tons to meet agricultural needs. The worst victim is going to be Punjab in case of higher fertiliser imports.
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