Tax: OGRA goes easy on fertiliser manufacturers

KARACHI:

In a surprising move, the Oil and Gas Regulatory Authority (Ogra) has left the feedstock price for fertilizer companies unchanged. Feed price was expected  to increase by Rs103 per  (million British thermal units) mmbtu to Rs416 per mmbtu, while fuel price was expected to increase by Rs87 per mmbtu to Rs100 per mmbtu, according to a note issued by IGI Securities.

Sale price of fuel (captive power plants) has been reduced from Rs494.86 per mmbtu to Rs460 per mmbtu, however, with the increase of Gas Infrastructure Development Cess to Rs100 mmbtu, the overall increase is just 10%.

The stationary feed price of Rs313 per mmbtu bodes positively for the fertiliser sector as the sector is already surrounded by gas load shedding, adds the note.

Published in The Express Tribune, July 3^rd, 2012.