Engro Fertilizers Announces Big Increase in Urea Prices

Engro Fertilizers Limited (PSX: EFERT) has increased urea prices by Rs. 882 per bag. According to JS Global, EFERT has increased urea prices by Rs. 882/bag to pass on the increase in gas prices. EFERT’s new urea price stands at Rs. 4,649/bag effective from 1st March 2024, while Urea prices for both FFC and FFBL stand at Rs. 3,767/bag and Rs. 5,489/bag, respectively. Following the increase by FFBL of Rs. 1350/bag, Engro has adjusted urea prices (23 percent) as gas prices have increased significantly (175 percent) for fertilizer manufacturers on the SNGPL and SSGCL network. Gas tariff for fertilizer companies on the MARI network remains subsidized, which has created price distortion with multiple urea prices and provided the middlemen an opportunity to earn excessive profits of Rs. 80 – 100 billion. EFERT has not increased the selling price of imported urea to facilitate the Government in providing support to farmers.