ISLAMABAD: Rebuffing the rumours that the price of fertiliser may jump as a result of the increase in gas prices being recommended by Oil and Gas Regulatory Authority (OGRA), the Ministry of Planning and Development has claimed that the price of fertiliser would come down in the coming days.
Chairing a meeting to review the demand and supply situation of fertiliser in the country, Planning Minister Asad Umar said that his government was planning measures to further reduce the prices of fertiliser in the days to come.
National Food Security and Research Secretary Dr Muhammad Hashim Popalzai, along with other senior officials, was also present on the occasion.
The meeting was informed that sufficient stock of Urea and DAP were available and there was no shortage of the commodities in the market. It was noted that fake news was being spread regarding the likelihood of an increase in Urea prices. The meeting observed that there was no reason for any hike in prices, and the speculation was being made “only by people with vested interests”.
Asad Umar directed all relevant departments to keep a close watch on the demand-supply situation as well as on the prices of the commodities to ensure that there was no price manipulation.
Earlier, there were media reports that following the OGRA’s recommendation to increase the prices of gas by up to 191pc, the prices of Uear and DAP would also be increased.
The industrialists had feared that the proposed increase [in gas prices] may create massive inflation across the board. For example, the cost of roti may double or even triple while CNG cost may go up by Rs24/kg.
“In line with the practices of the past, this increase in gas prices would be passed on to the fertiliser industry as well, which would lead to an increase in Urea prices by almost Rs600/bag,” industrialists had stated. “With demand for other phosphorous based fertilisers largely catered to by local players, any increase in gas prices would lead to prices of DAP and other fertilizers to momentously increase as well.”
frequent increase in the prices of gas and electricity along with uncertainty for their smooth availability remain a challenge for the PTI govt resulting far reaching consequences for the whole economy of the country.
So the rent seeking industries are upset at gas price increases. Gas has been unduly subsidized for decades and that has led to wastage. Now we’ve run out of gas and have to import it so prices will naturally rise. If fertilizer manufacturers and farmers can’t cope with this then they might as well close up shop. Imported food prices are lower than Pakistani prices anyway so it’s not like the farmers are doing us any favours. They only survive because of high import duties, subsidized water and fertilizer.
Agreed.