Gas price hike for fertiliser plants sought

ISLAMABAD: The government has initiated discussions to increase gas prices for the remaining six fertiliser plants aimed at preventing the possibility of windfall profits of around Rs100 billion due to its earlier decision to raise prices for only four plants. The issue of gas prices in the range of 175%, or Rs1,017 per mmbtu, may go to the Economic Coordination Committee (ECC) of the Cabinet next week, along with another proposal to prioritise gas allocation to the industrial sector, according to government sources. Earlier this month, the Special Investment Facilitation Council (SIFC) approved giving priority gas supply to the industrial sector, alongside residential and commercial users. The SIFC has approved the new gas supply merit order, with the ECC’s approval pending to finalise it. Under the revised order, fertiliser and power plants would receive second priority.