Fatima Fertilizers Announces Big Increase in Urea Prices

Fatima Fertilizer Company Limited (PSX: FATIMA) has increased urea prices by Rs. 551 per bag. Our channel checks have confirmed that FATIMA has increased urea prices by Rs. 551/bag despite any changes in current gas rates. The producer’s new rate stands at Rs. 4,400/bag effective from 23 April 2024. Earlier this month, Fauji Fertilizer Company Limited (PSX: FFC) hiked its urea prices by Rs. 633/bag to Rs. 4,400/bag. Engro Fertilizer Limited (PSX: EFERT) rates for urea remain at Rs. 4,649/bag. It bears mentioning that both FFC and FATIMA receive Mari network gas at a subsidized price of Rs. 580 per MMBtu, while other manufacturers on SSGC and SNGPL networks faced a Rs. 1,597 per MMBTU tariff hike in February 2024. This disparity in gas pricing for the same product within the industry has led to a massive disparity in urea rates. Urea prices play a crucial role in determining the prices of essential food commodities. Any arbitrary increase in urea prices by fertilizer companies can lead to higher costs for farmers, ultimately resulting in more expensive food prices for consumers.