NEW DELHI : The fertiliser department has written to the ministry of petroleum and natural gas, protesting against a hike in natural gas prices from Apr 1, a source in the ministry of chemicals and fertilisers said. The price of natural gas, a critical raw material for making fertilisers, is set to nearly double from the current $4.2 per mBtu from April.
The department has argued with the petroleum ministry that for every $1 per mBtu rise in the cost of gas, production cost of urea will rise 1,369.50 rupees a tn. A Parliamentary Standing Committee on Finance chaired by Yashwant Sinha said that the rise would be by Rs 1,384 per tn. Rashtriya Chemicals and Fertilizers apprehends that the firm could incur losses if prices cross $5 per mBu. -Cogencis