Gas industry's biggest client has its own problems – 19 Aug 2021

The fertilizer industry is the biggest consumer of gas in India.

Each ammonia-urea unit consumes a whopping 2.4 mmscmd of gas, equal to one cargo of LNG per month.

Gas accounts for 70% of the cost of fertilizers and 90% of the variable cost

The pool price of fertilizers has gone up by as much as Rs 189/mmbtu over the last six months

This translates into an increase in cost of production of urea by Rs.4400 per MT. For domestic urea industry, not only the prices of imported gas have gone up, but heavy taxation has further pushed up the delivered cost of gas

Read to understand the woes of the fertilizer industry