Government to end discounted tariff for fertiliser firms.

The Government is set to end concessionary gas tariff for Fatima and Engro Fertilizer plants by mid of current year.

Currently, a concessionary gas tariff of $0.70 per mmbtu is being availed by Fatima Fertilizer Ltd and Engro Fertilizer Ltd. The concessionary period for Fatima Fertilizer is set to expire in July 2021 after completing 10 years from its commercial operation date (COD) whereas Engro Fertilizer's concessionary period is coming to an end by June 2021.

However, the government and Engro Fertilizer are in dispute over expiration of gas supply agreement at discounted rates.

Once the concessionary period comes to an end for both the plants, the government would review the gas tariff for the entire fertiliser industry consuming indigenous gas and the existing distortions would be removed for creating a level playing...