Engro Fertilizers Engages Dealers to Ensure Fair Urea Pricing
March 15, 2024, Karachi – In a proactive effort to align with government directives and ensure fair pricing and availability of urea, Engro Fertilizers has initiated a series of discussions with its dealers. This initiative underscores the company’s commitment to adhering strictly to pricing guidelines and supporting the agricultural sector.
Key Highlights:
Dealer Conferences:
- Engro Fertilizers organized conferences in major cities including Lahore, Multan, and Hyderabad. At these events, Atif Muhammad Ali, Vice President of Marketing at Engro Fertilizers, reaffirmed the company’s dedication to maintaining urea prices at the official Maximum Retail Price (MRP). Ali emphasized the crucial role of dealers in ensuring that urea remains available at government-mandated prices. He also confirmed that Engro Fertilizers has not increased the price of imported urea, in alignment with its support for government efforts to aid farmers.
Gas Price Surge and Market Impact:
- The conferences addressed the recent surge in feedstock gas prices, which have risen from PKR 580/mmbtu to PKR 1,597/mmbtu for manufacturers on the SNGPL and SSGC networks. This increase has created a disparity in gas prices among different manufacturers. While 60% of manufacturers face higher gas costs, those on the Mari network, making up 40% of the total capacity, continue to benefit from subsidized gas prices at PKR 580/mmbtu. This disparity has led to market distortions and varying urea prices across the industry, with middlemen exploiting the situation and accumulating excessive profits estimated between PKR 80 to 100 billion.
Call for Uniform Gas Pricing:
- Mr. Ghulam Ahmed, Patron in Chief of the All Pakistan Fertilizer Dealer Association, highlighted the need for uniform gas pricing among all fertilizer manufacturers. He argued that standardizing gas prices would help stabilize urea prices, reduce market speculations, and ensure fairness within the industry. Ahmed noted that equalizing gas prices could also generate significant revenue, which could be redirected by provincial governments towards direct fertilizer subsidies or investments in modern agricultural practices.
Moving Forward:
Engro Fertilizers’ engagement with its dealers illustrates its commitment to ethical business practices and its dedication to supporting sustainable agricultural growth. As discussions continue, stakeholders are hopeful for outcomes that will benefit farmers and contribute to a more equitable fertilizer market.
Published in Pkrevenue.com, March 15, 2024
Published in International the News, March 16, 2024