KARACHI: The federal government has notified to waive off almost entire Gas Infrastructure Development Cess (GIDC) on gas consumed by fertilizer manufacturers to provide relief to the farmers.
The Ministry of Energy (Petroleum Division) in this regard issued a notification stated that the federal cabinet approved reduction in GIDC on gas consumed by fertilizer manufacturers to Rs 5/ mmbtu so that this benefit could be passed on to the farmers. After relief in GIDC, the urea bag’s price has reduced to Rs 400 and would be sold at Rs 2, 040.
The notification was forwarded to managing directors of SNGPL, SSGCL, Mari Petroleum Company Ltd, Pakistan Petroleum Ltd, Oil and Gas Development Company Ltd and Tullow Pakistan (Development) Ltd.
Earlier, the government had imposed GIDC amounting to Rs 300 per mmbtu and Rs 150 per mmbtu on feed stock and fuel stock consumed by fertiliser manufacturers, respectively through the GIDC Act 2015. Now, the GIDC rate has been reduced from Rs 400 to Rs 5 per bag.
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