# Higher gas prices push up urea rates

> The Pakistani government significantly raised gas feedstock prices for fertilizer makers on the SNGPL and SSGC networks, while producers on the Mari network stay subsidized. FFBL raised urea by Rs1,350 per bag, and Engro followed with a Rs785 per bag increase effective March 1, 2024. Imported urea prices were left unchanged.

- Date: 2024-02-29 · published 2024-02-29T12:00:00.000Z
- Category: policy · region Pakistan · magnitude medium
- Page: https://feedsoft.ai/events/6432-higher-gas-prices-push-up-urea-rates
- Commodities: [Urea](https://feedsoft.ai/c/UREA.md)

## Why it matters

Higher gas costs raise domestic urea production costs, pushing up nitrogen fertilizer prices for farmers. The two-tier gas pricing creates market distortions that can keep local urea prices elevated.

## Read by commodity

- UREA: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| UREA | 2024-03-01 | [Engro Fertilizers raises urea price by Rs740 amid gas hike](https://feedsoft.ai/events/6435-engro-fertilizers-raises-urea-price-by-rs740-amid-gas-hike.md) | +8.3% | +5.8% |
| UREA | 2024-03-01 | [Urea prices skyrocket as gas subsidies vanish, wheat crop at risk](https://feedsoft.ai/events/6431-urea-prices-skyrocket-as-gas-subsidies-vanish-wheat-crop-at-risk.md) | +8.3% | +5.8% |
| UREA | 2023-11-17 | [Urea Sector Update - Marginally higher urea price outlook in 2024 - Vietcap](https://feedsoft.ai/events/33475-urea-sector-update-marginally-higher-urea-price-outlook-in-2024-vietcap.md) | +0.7% | -8.2% |
| UREA | 2021-09-16 | [China's urea futures hit limit up on energy regulations, soaring coal prices](https://feedsoft.ai/events/45384-china-s-urea-futures-hit-limit-up-on-energy-regulations-soaring-coal-prices.md) | -0.1% | +40.7% |
| UREA | 2026-03-16 | [China Reins in Fertilizer Exports as War Pushes Up Global Prices - Bloomberg](https://feedsoft.ai/events/20096-china-reins-in-fertilizer-exports-as-war-pushes-up-global-prices-bloomberg.md) | +3.2% | +17.0% |

## Sources

- brecorder.com: https://www.brecorder.com/news/40291465/higher-gas-prices-push-up-urea-rates

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.