Competition Commission of Pakistan issues show cause notices to urea producers – Alfalah Securities Limited

Karachi, June 29, 2012 (PPI-OT): According to newspaper sources, the Competition Commission of Pakistan (CCP) has issued show cause notices to all major urea manufacturers including FFC, FFBL, ENGRO, DH Fertilizers, Fatima Fertilizers, Pak Arab and Agritech for increasing urea prices by 85.88% from PkR 850/50-kg bag in December 2010 to PkR 1,580/50-kg bag in October 2011 without any justification and blamed them for using their market dominance to reap higher profits.

Urea producers have claimed that an increase in urea prices is a result of prolonged and uninformed gas curtailment by the government and imposition of GST has also resulted in increasing urea prices.

According to Alfalah Securities Limited believes that the fertilizer manufacturers if failed to provide proper justification against the show-cause notices issued than the CCP may impose a penalty on them.