The supply disruption follows the closure of two important border crossings between Pakistan and Iran on October 17. According to Reuters, the two countries have cited different reasons for the closures. Pakistan said it shut the crossings over security concerns and to prevent smuggling, while Iran attributed the move to technical reasons.
Pakistan imports around 50% of its total LPG requirements from Iran, making the disruption a significant concern for consumers. With supplies from the neighbouring country halted, households are facing rising prices and difficulties in obtaining cooking gas.
Imports from Oman and Iraq Also Affected
Pakistan imports approximately 70% of its LPG requirements from foreign countries. Apart from Iran, the country also receives gas from Iraq and Oman.
According to Pakistan Petroleum Minister Ali Pervaiz Malik, the country requires approximately 6,500 to 7,000 tonnes of LPG every day. Domestic production accounts for 2,000 to 2,500 tonnes, while imports meet the remaining demand.
However, disruptions in the Strait of Hormuz caused by the Iran war have also affected LPG imports from Iraq and Oman, further tightening supplies in Pakistan.
LPG Cylinders Selling at More Than Double Official Rates
Pakistan's Oil and Gas Regulatory Authority (OGRA) has fixed the price of an 11.8-kg domestic LPG cylinder at 3,296 Pakistani rupees. Despite the official rate, cylinders are being sold in the market at prices more than double the regulated amount.
According to Irfan Khokhar, president of the Pakistan LPG Association, a 12-kg cylinder is selling for around 7,000 Pakistani rupees in Balochistan, 7,500 rupees in Lahore and as much as 8,200 rupees in Skardu.
The gap between the official price and market rates has increased the burden on consumers as supply disruptions continue to affect availability across the country.
Government Expects Prices to Improve Within Two to Three Days
Petroleum Minister Ali Pervaiz Malik said the government would import LPG directly and make it available in the domestic market. He expressed hope that prices would begin to improve within the next two to three days.
Speaking on a Geo News programme, Malik said LPG should cost between 400 and 425 Pakistani rupees per kilogram. He warned that action would be taken against those charging excessive prices and said the government would make the LPG pricing process more transparent.
Malik claimed that the difference between market prices and the prices of locally produced LPG was creating a gap of around 30 billion Pakistani rupees. He alleged that some people were charging higher rates by obtaining stay orders from courts.
The minister said the prime minister had directed the attorney general to pursue the remaining cases and take steps to have the stay orders lifted.
Hundreds of Trucks Stranded on Pakistan-Iran Border
The closure of the border crossings has left hundreds of trucks, including LPG tankers, stranded on both sides of the Pakistan-Iran border.
According to Shamsul Haq, more than 1,000 Pakistani containers carrying potatoes, bananas and rice are awaiting passage to Iran.
Truck drivers said they had been waiting for the border to reopen for several days and were not receiving adequate basic facilities while stranded. Driver Abdul Ghani Baloch said he had been stuck at the border for more than a week.
With Iranian LPG supplies suspended, imports from other countries also affected and hundreds of trucks awaiting clearance, Pakistan's gas market continues to face supply pressures. The government's proposed direct imports and enforcement measures are expected to play a key role in addressing the price surge and easing the difficulties faced by consumers.
About The Author
Comment List