Proposed Gas Infrastructure Development Cess changes could add Rs700 to fertiliser bag prices, Senate panel told

Profit by Pakistan Today reported that officials from the Petroleum Ministry briefed the Senate Standing Committee on Petroleum on Friday, warning that each fertiliser bag could cost up to Rs700 more. The increase would follow approval of amendments to the Gas Infrastructure Development Cess (GIDC) law and the Natural Gas Development Surcharge framework, which the government wants to use to fund a broader set of gas projects. The committee, led by Syed Mustafa Mahmood, was reviewing both proposals.

The added charge is linked to new pipelines planned to carry gas from Mari to fertiliser plants, with an estimated cost of $500 million that would be recovered through a cess on fertiliser bags. Originally, GIDC money was earmarked for the TAPI and Iran-Pakistan pipelines, but the amended framework would let it cover other gas-sector infrastructure. Officials also said Rs294 billion gathered through the levy has to be spent within six months, as ordered by the Supreme Court.

PPP leader Syed Naveed Qamar opposed the proposal, arguing that the cost would fall on farmers and consumers, and he asked why consumers should pay for infrastructure built by companies. He also asked for the legislation to be deferred, and the panel ended up postponing both bills without moving either toward passage. A fertiliser industry representative said the facilities would help farmers and that the outlay still needed recovery.