Govt Demands Explanation from Fauji Fertilizer for Urea Price Hike

The federal government has asked Fauji Fertilizer Company Limited (PSX: FCC) to explain why it raised urea prices on April 9, 2024. Vice President JS Global Waqas Ghani told ProPakistani that the Ministry of Industries & Production has asked FFC to submit the rationale behind the recent Rs. 663/bag increase in urea price, taking it to Rs. 4,400/bag from April 9, 2024. The query arises on the back of no rise in input costs for FFC (especially gas prices) that may justify the same. According to sources, FFC has been requested to provide convincing justifications for the price adjustment, where failure to do so may lead to administrative measures by the Ministry under Section 5 of the Price Control and Prevention of Profiteering and Hoarding Order, 2021. To recall, Engro Fertilizers (EFERT) had increased its Urea price to Rs4,649/bag, post increase in gas prices. After that, an anomaly was created in the fertilizer sector, where FFC was selling Urea at Rs3,767/bag due to no increase in gas prices.