Photonews Logo Photonews logo
  • Home
  • Pakistan
    • Punjab
    • Sindh
    • Khyber Pakhtunkhwa
    • Azad Jammu Kashmir
    • Balochistan
    • Gilgit – Baltistan
  • World
  • Business
  • Entertainment
  • Videos
    IShowSpeed Daniel La Belle race
    Videos

    IShowSpeed Beats Daniel La Belle in 40-Meter Race, Hits 41M Subscribers

    June 24, 2025 2 Min Read
    Cardi B new single Outside
    Videos

    Cardi B’s ‘Outside’ Single Sparks Buzz Over Offset and Stefon Diggs

    June 20, 2025 2 Min Read
    Squid Game Season 3
    Videos

    Squid Game Season 3: Final Trailer Unveils Epic Plot

    June 14, 2025 2 Min Read
  • Sports
  • Technology
  • Offbeat
  • Blog
  • Contact
Reading: Govt may subsidise LNG supply to fertiliser units
PhotoNews Pakistan PhotoNews Pakistan
Font ResizerAa
Search
  • Home
  • Pakistan
    • Punjab
    • Sindh
    • Khyber Pakhtunkhwa
    • Balochistan
    • Azad Jammu Kashmir
    • Gilgit – Baltistan
  • World
  • Business
  • Entertainment
  • Videos
  • Sports
  • Technology
  • Offbeat
  • Blog
  • Contact
Have an existing account? Sign In
Follow US
© 2022 Photonews. All Rights Reserved.
PhotoNews Pakistan > Business > Govt may subsidise LNG supply to fertiliser units
Business

Govt may subsidise LNG supply to fertiliser units

Web Desk
By Web Desk Published September 23, 2015 4 Min Read
Share
SHARE
The government is in the process of considering provision of subsidy on imported liquefied natural gas (LNG) supply to fertiliser plants that have been shut because of dearth of domestically produced natural gas – a significant move that will make urea available to farmers at affordable prices.

“LNG is expensive compared to natural gas produced in the country and, therefore, the government is planning to subsidise the imported gas for fertiliser manufacturing plants to keep the commodity’s prices to a minimum for the farmers,” said an official.

Four fertiliser plants connected to the pipeline network of state-owned Sui Northern Gas Pipelines Limited (SNGPL) have been encountering gas supply problems because of shortage since the days of previous Pakistan Peoples Party government.

On Monday, SNGPL, Sui Southern Gas Company and Pakistan State Oil signed a tripartite agreement to share risks and pave the way for LNG purchase from Qatar in a government-to-government arrangement.

Petroleum and Natural Resources Minister Shahid Khaqan Abbasi has already announced that local gas would be available for domestic consumers only whereas other consumers including the fertiliser and industrial units would have no energy supplies in the upcoming winter season.

Keeping in view this situation, the government was planning to provide LNG to fertiliser plants that were closed in the absence of natural gas. This was told to the cabinet in a meeting held on September 15.

However, the meeting participants noted that since LNG cost more than natural gas, its supply to fertiliser plants would possibly be subsidised. Already an amount of Rs25 billion has been set aside in the current fiscal year for subsidising the imported urea, which could potentially be diverted and used for curtailing the cost of locally manufactured fertiliser.

In the cabinet meeting, it was outlined that in order to cut the cost of production, a Rs20-billion fund would be created with equal contribution from federal and provincial governments to provide di-ammonium phosphate (DAP) fertiliser to the farmers at discounted prices. This would result in bringing down the price by more than Rs500 per 50kg bag.

However, officials say the federal government may not succeed in setting up the fund as provinces, mainly Sindh and Khyber-Pakhtunkhwa, were unlikely to offer the required support as ruling political parties in these two provinces had termed the recent prime minister’s agricultural package a tool for political rigging.

It was decided in the cabinet meeting that concessionary tariffs of Rs10.35 per unit for peak hours and Rs8.85 per unit for off-peak hours for agricultural tube wells, which were announced in 2013, would continue to remain in place during 2015-16. This will lead to a federal government subsidy of Rs7 billion for tube well owners.

In an attempt to further facilitate the tube well owners, the government has allowed them to pay only current bills and delay the clearance of arrears until the end of December.

This will be supplemented with grants from the provincial governments that will bear the cost of general sales tax amounting to Rs7 billion.

Also read : OGRA may determine LNG price soon
TAGGED:Sindh
Share This Article
Facebook Twitter Pinterest Whatsapp Whatsapp LinkedIn Email Copy Link Print
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Advertisement

HBL Saving Made Easy
HBL Saving Made Easy

Recent Posts

Bajaur Bomb Blast

Bajaur Bomb Blast Kills Five, Injures 11 in Khyber Pakhtunkhwa

Justice Shah JCP Seniority

Justice Mansoor Ali Shah Questions JCP’s Judge Seniority Process

Alibaba Taobao Subsidies

Alibaba’s Taobao Announces $7 Billion Subsidies to Boost China’s Spending

Post Archives

More Popular from Photonews

ICC cricket rule changes 2025
Sports

ICC Revises Cricket Rules with Stop Clock in Tests, Updated DRS Protocols

3 Min Read
Pakistan Monsoon 2025
Pakistan

Pakistan Monsoon 2025: Karachi Braces for More Rains Amid Flood Alerts

3 Min Read
SCO summit 2025 Qingdao
World

China Hosts Iran, Russia Defense Ministers at SCO Summit in Qingdao

3 Min Read
Tech

Fermi America Plans Massive Nuclear, Gas, Solar Hypergrid in Texas

Fermi America, co-founded by former U.S. Energy Secretary Rick Perry, announced plans on June 26, 2025,…

June 27, 2025
Offbeat

Jeff Bezos and Lauren Collins Celebrate Wedding with Lavish Venice Parties

Jeff Bezos, the Amazon founder, and journalist Lauren Collins arrived in Venice, Italy, on June 25,…

June 26, 2025
Pakistan

How Many Reserved Seats Restored in Assemblies After Pakistan SC Ruling?

On June 27, 2025, Pakistan’s Supreme Court Constitutional Bench, led by Justice Aminuddin Khan, delivered a…

June 27, 2025
Entertainment

Beyoncé Narrowly Escapes Fall After “Flying Car” Malfunctions

A dramatic moment unfolded during Beyoncé’s Cowboy Carter Tour stop in Houston on June 28, 2025,…

June 30, 2025
PhotoNews Pakistan

Always Stay Up to Date

Subscribe to our newsletter to get our newest articles instantly!

Categories

  • World
  • Pakistan
  • Punjab
  • Sindh
  • Khyber Pakhtunkhwa
  • Balochistan
  • Azad Jammu Kashmir

 

  • Top News
  • Business
  • Entertainment
  • Sports
  • Videos
  • Tech
  • Offbeat
  • Blog

© 2024 Phototnews
All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?