Good News for LPG Consumers: 2 Gas Ships from Oman Arrive in Pakistan, Prices Likely to Fall
Karachi (Daily Qudrat) — Good news has emerged for consumers distressed by rising prices of liquefied petroleum gas (LPG) in Pakistan, as 2 ships carrying LPG from Oman have arrived at Port Qasim in Karachi, after which gas availability in the country is expected to improve and prices are likely to decrease.
According to a report in Daily Jang, both ships arrived in Pakistan carrying thousands of metric tons of LPG. The ship named Prianis offloaded 4,250 metric tons of LPG at Sui Southern Gas Company’s terminal, while the ship named Elisa One unloaded 3,083 metric tons of gas at the Engro terminal.
Market sources said that with the arrival of the new imported consignment, LPG supply in the local market is expected to improve, as a result of which prices may decrease from Monday; however, no final announcement has yet been made regarding the possible amount of the price decrease.
Stalled LPG Supply from Iran Also Expected to Resume
On the other hand, obstacles in LPG imports from Iran via the border route are also expected to be removed. According to the Jang report, the stalled supply of LPG through the Iranian border is likely to resume from Monday.
Earlier on October 24, Jang reported regarding LPG dealers that LPG bowsers standing at the Iranian border since October 16 have been allowed to enter Pakistan and the gas supply process has begun; however, the restoration of limited trade activities at border crossings and routine clearance of all imported goods are two separate matters, so the situation regarding the full and uninterrupted restoration of LPG supply from Iran is yet to become clear.
Iranian Ambassador Also Denied Closing Borders
Iran’s Ambassador to Pakistan, Reza Amiri Moghaddam, clarified in a statement on Sunday that Iran has not closed its borders for Pakistan and has not imposed any restrictions on the export of Iranian products, including LPG. Traders are facing difficulties due to changes in Pakistan’s import e-form procedure.
He said that several hundred trucks loaded with LPG, despite crossing the Iranian border and entering Pakistani territory, have been awaiting clearance for several weeks. Consultations with Pakistani authorities are ongoing to resolve this issue, and Iran is cooperating to normalize trade between the two countries.
How High Had LPG Prices Risen?
After obstacles in LPG imports from Iran, an extraordinary increase in gas prices was witnessed in various parts of Pakistan. In the northern mountainous areas, LPG prices had reached up to Rs 600 per kilogram, while reports indicated that an 11.8 kg domestic cylinder was being sold for up to Rs 7,200 in some areas.
Chairman of the LPG Distribution Association, Irfan Khokhar, said that LPG was also being sold at approximately Rs 500 per kilogram in Punjab and Khyber Pakhtunkhwa, while the price of a domestic cylinder had reached up to Rs 6,000 in some places. These prices were significantly higher than the official price set by OGRA for October, causing severe financial difficulties for consumers.
Will LPG Become Cheaper Immediately Now?
Market sources said that with the arrival of the new imported consignment from Oman and improvement in supply via the land route from Iran, LPG availability may increase, which could reduce pressure on prices in the local market. However, the actual decrease in prices will depend on the delivery of imported gas to the market, the quantity available to distributors, and border clearance matters.
For now, no new official retail price or uniform countrywide decrease has been confirmed; however, a possible decrease in LPG prices will be important for domestic consumers, hotels, small businesses, and especially residents of areas where natural gas is not available through pipelines and where LPG is relied upon for cooking and other needs.
