LPG crisis deepens as prices surge by Rs80 per kg in 24 hours

KARACHI (Staff Report): Pakistan is facing a looming severe Liquefied Petroleum Gas (LPG) crisis after the abrupt suspension of trade with Iran disrupted supplies, triggering a sharp price hike of Rs80 per kilogram within the last 24 hours.

Senior Vice Chairman of LPG Marketers Association, Muhammad Ali Haider, warned that the country could face a serious shortage if the supply disruption continues.

He said the suspension of the trade system with Iran has directly impacted LPG supply, causing panic in the market.

According to Haider, LPG prices have recorded an increase of Rs80 per kg in the last 24 hours alone. He cautioned that if supplies from Iran remain suspended, prices could further escalate by Rs150 to Rs200 per kg within the next two to three days.

“Pakistan may face a daily supply shortfall of 4,500 to 5,000 tons of LPG,” Haider said, urging the government to immediately allow LPG consignments stranded at the border to enter the country.

He said the sudden disruption in LPG supply is affecting the entire market, creating conditions favorable for hoarders and black marketeers to exploit consumers.

He called on the federal government, Ministry of Petroleum and Ministry of Commerce to intervene immediately to resolve the crisis.

Highlighting Pakistan’s import dependence, Haider said about 70 percent of the country’s LPG requirement relies on external supply, and 80 percent of the imported LPG comes through border trade.

He demanded that the government shift from monthly to daily or weekly price revision mechanism for LPG to reflect ground realities.

He said that based on ground realities, stakeholders had agreed to fix LPG price at Rs370 per kg, but the commodity is currently being sold at up to Rs530 per kg in Karachi.

“If the supply from the border remains suspended for another two to three days, prices could further increase by Rs50 to Rs100 per kg,” he warned.

Haider said the crisis could intensify hardships for citizens in the upcoming winter season when demand for LPG typically rises sharply across the country, especially in areas without natural gas supply.

Market sources said LPG retailers have already started overcharging, while stocks at many shops are depleting rapidly. The supply crunch is being felt not only in Karachi but also in other parts of Sindh, Balochistan and Punjab where LPG is widely used for domestic and commercial purposes.

Industry representatives said Iran has been a major source of low-cost LPG for Pakistan through border trade via Taftan and other crossing points. The trade, though largely informal, meets a significant portion of demand in Balochistan and supplies upcountry markets.

They said any prolonged disruption in Iranian supplies puts direct pressure on terminal imports, which are more expensive and take longer to arrive.

Haider said the government should adopt a two-pronged strategy – immediate release of border-lying consignments to stabilize the market, and a medium-term policy to ensure consistent import flows.

He also urged the Oil and Gas Regulatory Authority (OGRA) to take action against profiteers and ensure sales at notified prices.

He said LPG marketers are willing to cooperate with the government to maintain supply, but need policy support and clearance of border shipments.

“Unless urgent steps are taken, the LPG crisis will become severe in the coming days, burdening domestic consumers who already face high inflation,” he said.

The LPG Marketers Association appealed to the Prime Minister and federal ministers concerned to take notice of the situation and convene an emergency meeting with stakeholders to prevent the crisis from spiraling out of control.

Pakistan’s annual LPG consumption stands at over 1.5 million tons, with domestic production meetings only around 60 percent of demand. The remaining is met through imports from Iran and via sea route.

With winter approaching, demand is expected to increase by 30-40 percent, making uninterrupted supply critical to avoid hardship for millions of households.

Consumers have also complained that LPG is being sold above official rates, with no effective check by district administration or OGRA.

Haider said price regulation should be aligned with market dynamics and supply costs, and called for transparent pricing based on daily international and border trade trends rather than a fixed monthly price that does not reflect sudden supply shocks.