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Fertiliser industry: Govt mulling ending cheaper gas facility

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The caretaker government is likely to unify feed gas prices of fertiliser industry at par with industrial rate of Rs 1,260/ MMBTU instead of subsidiaed rates, amid accusations that fertiliser industry is not passing on subsidy to the farmers, sources close to Energy Minister told REPUBLIC POLICY.
The new proposal, if implemented, will result in an increase in urea price by Rs 800 per bag from Rs 3,800 to Rs 4,600 per bag whereas the imported price of urea is Rs 7,700 per bag.
“Unification of gas prices would result in saving of Rs 90 billion which may be routed to small farmers by the provinces,” the sources added.

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