The Economic Coordination Committee (ECC) has approved the provision of subsidized gas to two fertilizer companies in Punjab.
The decision revises a previous directive from the federal cabinet, allowing these companies access to cheaper gas until September 30th. Each company will receive gas at Rs. 1,597 per million British thermal units (MMBTU).
The subsidy is expected to shift a financial burden of approximately Rs. 15 billion onto domestic gas consumers. The announcement was made following an ECC meeting chaired by Federal Finance Minister Muhammad Aurangzeb.
The statement highlights the necessity of uninterrupted gas supply to these SNGPL-based fertilizer factories from March 31st to September 30th, ensuring no disruptions in the delivery of urea fertilizer for the Kharif cropping season.
It is noted that the ECC had recently imposed restrictions on supplying cheap gas to the fertilizer industry.
