Engro has announced to raise urea price by Rs 125 per bag, owing to shortage of gas. Sources said that Engro would increase urea price by Rs 125 per bag plus Rs 20 GST with effect from July 15, 2011. The total impact of the increase would be Rs 145 per bag and the new price of urea would be Rs 1,360 per bag from today (Friday). Engro has attributed the increase to huge production losses due to enhanced gas curtailment.
It is expected that following the Engro''s decision, FFC and FFBL would also raise the urea prices. Sources said SNGPL was planning to shut down fertiliser companies for 15 days, however, its effect would be 20 days, as a plant usually takes five days to start production. Engro''s new plant has also stopped production last night due to unavailability of gas. The suspension of gas supply to the fertiliser sector had resulted in an estimated shortfall of 0.35 million tons of urea, sources said.
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