Fertiliser sector: ECC may approve revised plan of gas load management

Economic Co-ordination Committee (ECC) of the cabinet scheduled to meet today (Thursday) may approve a revised gas load management plan for fertiliser sector to curtail gas load shedding from 45 to 30 days in a bid to cut prices of fertiliser, Business Recorder has learnt.
General Manager (GM) Sales SNGPL revealed to Business Recorder that the gas supply to three fertiliser plants had been closed on December 27, 2010 whereas supply to one plant was suspended on January 7, 2011 under gas load management plan. By suspending gas supply to fertiliser plants, SNGPL was saving 190 mmcfd gas that was being diverted to other priority sectors.
After suspension of gas supply under gas load management plan, fertiliser manufacturers had raised urea price by Rs 190 per 50 kg bag over which farmers had registered a protest urging government to take notice against manufactures to withdraw decision of urea price hike.
The representatives of fertiliser industry in a recent meeting of Fertiliser Price Review Committee (FPRC) were asked to explain the position why they had raised urea price. They assured the government to take the price hike back if gas supply is restored to fertiliser sector.
After detailed discussion with industry representatives, FPRC had recommended to Prime Minister that Gas Load Management may be revisited to curtail gas to 30 days instead of 45 days, as per previous year practice to reduce urea prices in the country. Fertiliser industry representatives had also informed that the price hike in fertiliser was mainly due to the 45-day winter gas load-shedding plan instead of 30 days.
"The decision regarding price hike would be taken back after restoration of gas supply to the industry, they said adding that about 0.2 million tons of urea would be produced locally within 15 days if proposal of revised gas load shedding schedule is implemented.