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Wednesday June 19, 2024

Govt to end subsidy on gas for fertiliser industry

Fertiliser industry was getting Rs217 per mmbtu subsidy on gas and they were receiving gas at rate of Rs1597 mmbtu

By Our Correspondent
May 25, 2024
A farmer disperses fertiliser in a rice paddy field on the outskirts of Lahore. — AFP/File
A farmer disperses fertiliser in a rice paddy field on the outskirts of Lahore. — AFP/File

ISLAMABAD: In a major development, the federal government with approval of the Cabinet has decided to end subsidy on gas for the fertiliser industry.

The fertiliser industry was getting Rs217 per mmbtu subsidy on gas and they were receiving gas at rate of Rs1597 mmbtu.

The Federal Cabinet decided that the subsidy on gas being extended fertiliser industry was of no benefit for the farmers community. With end of subsidy, the rate of gas for fertilizer industry will now reach to Rs1814 per mmbtu.

It was informed that the government, now intends to provide this subsidy to the farmers community. The sources said the Federal Cabinet took unanimous decision to end subsidy on gas for the fertilizer industry.