Engro Fertilizers has increased the price of urea by Rs. 150 per bag, bringing the new rate to Rs. 4,435 per bag, effective April 4, 2026, according to market sources cited by Arif Habib Limited.

This hike follows the company’s earlier reduction of discounts—from Rs. 400 per bag down to Rs. 150—which has now been completely removed, pushing retail prices higher ahead of the new application season.

Industry insiders suggest other major players, including Fauji Fertilizer Company, may implement similar price adjustments in the coming week, driven by rising input costs.

The price revision comes amid weaker domestic demand, with Pakistan’s total urea sales for the first two months of 2026 falling to 468,000 tons—a 41% decline compared to the same period last year—despite a modest rebound in February and record sales in December 2025.

Analysts say the removal of discounts signals a shift from supporting demand to protecting margins, especially as inventory pressures from heavy pre-season purchases in December have eased.

Globally, urea prices have surged sharply, with Middle East granular urea climbing to $750 per ton by the end of March from around $580 per ton at the start of the month—a jump of over 29% amid escalating regional tensions.