The federal government has officially approved the termination of the gas subsidy for fertilizer factories, a move to reform financial support to benefit farmers more directly.
The unanimous decision by the federal cabinet marks a significant shift in policy.
Previously, fertilizer factories received a subsidy of Rs 217 per MMBtu and gas at a reduced rate of Rs 1597 per MMBtu. However, the government has determined that this subsidy model has not effectively supported farmers, who are the intended beneficiaries.
The cabinet’s decision will discontinue the subsidized rate, elevating the price of gas supplied to fertilizer factories to Rs 1814 per MMBtu.
The government plans to implement a system of direct subsidies to farmers, aiming to provide more targeted and efficient financial support.
