Engro increases fertiliser price on gas outage

Other companies expected to follow suit.

KARACHI: Engro Corporation increased urea price by Rs202 per bag on Monday in a quick response to curtailment in gas supply to its new plant, according to analysts.

Lower gas production at Qadirpur field due to compressor testing as well as severe power outages in Punjab have led to curtailment in gas supply to fertiliser plants, said AKD Securities senior investment analyst Ayub Ansari. The fresh increase has taken ex-factory urea price to Rs1,580 per bag. The plant has been facing gas shortages since its start as commercial production was delayed due to gas curtailment followed by production disruption earlier this year due to the same problem.

Other manufacturers including Fauji Fertiliser Company (FFC), Fauji Fertiliser Bin Qasim (FFBL) and Fatima Fertiliser are also expected to follow suit.

Published in The Express Tribune, October 4^th, 2011.