Key Takeaways
- Liquefied petroleum gas (LPG) imports from Iran have halted, worsening shortages.
- Prices of 12 kg LPG cylinders have risen to 7,000 Pakistani rupees (USD25).
- Traders and consumers fear further price hikes as winter approaches.
The shortage of liquefied petroleum gas (LPG) has significantly worsened due to supply disruptions from Iran, according to traders. Pakistan imports approximately 7,000 metric tons of LPG daily from Iran, with more than 4,000 tons entering through the Gabd-Rimdan border alone.
Shamsul Haq, former president of the Gwadar Chamber of Commerce and Industry, stated that these imports are currently at a standstill. He also noted that over 1,000 Pakistani containers carrying goods such as potatoes, bananas, and rice for Iran are stranded. However, Pakistani exports of perishable goods have since resumed.
The price of a 12 kg LPG cylinder has surged to 7,000 Pakistani rupees (USD25) from 4,500 rupees (USD16) within days, and could rise further if the disruptions continue. Hundreds of trucks, including LPG tankers, are stranded on both sides of the border, according to Haq.
Traders and consumers are concerned about potential further price increases as winter approaches. Lahore resident Farhat Abbas reported that he now pays 500-600 rupees per kilogram for LPG, up from 250 rupees per kilogram before the closure.
The Quetta Chamber of Commerce and Industry has advised its members to halt new orders with Iran until further notice. Truck drivers stuck at the supply route have been waiting for days in harsh conditions with limited access to basic amenities.
Pakistan-Iran trade for the 2023-24 fiscal year amounted to approximately USD2.8 billion, including USD684 million in Pakistani exports. The Pakistan LPG Association Chairman, Irfan Khokhar, warned that shortages and price increases could worsen, noting that LPG prices are already varying across different regions of Pakistan.
A 12 kg cylinder sells for about 7,000 rupees in Balochistan, 7,500 rupees in Lahore, and 8,200 rupees in Skardu, according to Khokhar. Higher LPG prices are feeding through to other goods, impacting the overall economy.
On a recent visit to Tehran to discuss the US-Iran war, Pakistan’s army chief also discussed issues with Iranian leaders, including the resumption of trade. Iran’s foreign ministry stated that consultations on resuming trade were underway.
These imports are at halt.
Shamsul Haq, Former president of the Gwadar Chamber of Commerce and Industry
Traders said the price of a 12 kg LPG cylinder had risen to 7,000 Pakistani rupees (USD25) from 4,500 rupees (USD16) within days and could climb further if the disruptions persist.
Traders, Not specified
A 12 kg cylinder sells for about 7,000 rupees in Balochistan, 7,500 rupees in Lahore and 8,200 rupees in Skardu, he said, adding that higher LPG prices were feeding through to other goods.
Irfan Khokhar, Pakistan LPG Association Chairman
