ISLAMABAD-In its effort to reduce gas sector circular debt and to introduce uniform tariff for all the fertilizer companies across Pakistan, the government is all set to jack up the gas tariff of remaining four fertilizer plants by 92 percent and 54 percent for the feed stock and fuel stock, respectively. The Economic Coordination Committee (ECC) of the Cabinet has approved the summary of the Petroleum Division for enhancing gas tariff for the remaining four fertilizer plants across the country, official source told The Nation.
ECC has approved upward revision in gas tariff for four fertilizer plants from Rs302/MMBtu to Rs580/MMBtu for feed stock and from Rs1,023/MMBtu to Rs1,580/MMBtu for fuel. The new prices have yet to be notified; however, it will be effective from October 1, 2023, said the source. Four fertilizer plants, three of FFC and one Fatima Fertilizer, are on Mari Petroleum network and are getting tariff of Rs302/MMBtu for feed and Rs1,023/MMBtu for fuel.
Of the 11 fertilizer plants, seven are currently being provided gas at Rs510/ MMBtu for feed stock and Rs1,500/MMBtu as fuel for electricity generation, steam and use of housing colonies. The government has already revised gas tariff for seven fertilizer plants on the SNGPL and SSGC networks.
For fertilizer companies working on SNGPL system including Pak-American Fertilizer Company Limited, Dawood Hercules Chemicals Limited, Pak-China Fertilizer Haripur, Hazara Phosphate Fertilizer plant Haripur, and Pak-Arab Fertilizer Limited Multan gas will be provided at the flat rate of Rs510/MMBtu for gas as feed stock and Rs1,500/MMBtu for gas used as fuel for generation of electricity, steam and usage of housing colonies. However, for Engro Fertilizer Limited, also on the SNGPL network, all off-takes will be at the flat rate of $0.70/MMBtu for gas as feed stock and Rs1,500/MMBtu for gas used as fuel for generation of electricity, steam and usage of housing colonies. On SSGCL system, Fauji Fertilizer Bin Qasim Limited sale price all off-takes set at the flat rate of Rs510/MMBtu for gas as feed stock and Rs1,500/MMBtu for gas used as fuel for generation of electricity, steam and usage of housing colonies.
However, three plants of Fauji Fertilizer and one of Fatima were getting gas for feed stock at the rate of just Rs302/MMBtu, and for fuel at Rs1,023/MMBtu since September 2020, said the source. Now the government has decided to bring an end to discriminatory tariff regime among various fertilizer plants.