Pakistan Faces LPG Shortage as Iran Border Closure Pushes Cylinder Prices Above Rs7,000

LAHORE: Pakistan is facing a worsening liquefied petroleum gas (LPG) shortage following the suspension of imports from Iran due to the closure of key border crossings, triggering a sharp increase in domestic cylinder prices and raising concerns about further inflation.

According to a Reuters report, disruptions to cross-border trade have affected LPG supplies, with traders warning that prices could rise further if the situation persists.

The border crossings at Gabd-Rimdan and Taftan between Pakistan and Iran were closed on October 17, disrupting trade in LPG and other commodities. The Balochistan government attributed the closure to security concerns and efforts to curb smuggling, while Iran’s Foreign Ministry linked the disruption to technical issues.

Domestic LPG Cylinder Prices Surge

According to Reuters, the price of a 12-kilogram LPG cylinder in Pakistan rose from around Rs4,500 to Rs7,000 within a few days of the border closures.

Irregular supplies have led to significant price differences across various areas. Irfan Khokhar, chairman of the LPG Association, said cylinders were being sold for more than Rs7,000 in some cities.

A separate report by Geo News indicated that LPG cylinders were reportedly being sold at more than twice the officially prescribed price in some areas amid the shortage.

Sources in the Oil and Gas Regulatory Authority (OGRA) identified supply disruptions as a major factor behind the price increase.

LPG Tankers and Cargo Vehicles Stranded at Border

Reuters reported that hundreds of cargo vehicles, including LPG tankers, were stranded on both sides of the Pakistan-Iran border following the suspension of cross-border trade.

The disruption has affected not only gas supplies but also the movement of other commercial goods.

Shamsul Haq, former president of the Gwadar Chamber of Commerce and Industry, said LPG imports through the border routes had come to a halt, while Pakistani exporters were also facing difficulties.

Although the Gabd-Rimdan crossing was subsequently partially reopened for the export of certain Pakistani agricultural products to Iran, LPG imports remained disrupted.

The Quetta Chamber of Commerce and Industry has also advised traders to avoid placing new trade orders with Iran until the situation becomes clearer.

Government Announces Action Against Overpricing

Federal Petroleum Minister Ali Pervaiz Malik has expressed concern over rising LPG prices and said the government is taking steps to improve supplies and stabilise the market.

Speaking to Geo News, the minister said action would be taken against sellers charging prices above the officially prescribed rates.

He added that the government was also considering importing LPG directly and supplying it to the domestic market to ease the shortage and provide relief to consumers.

Efforts Underway to Restore Pakistan-Iran Trade

Iran’s Foreign Ministry has said consultations are continuing with Pakistan to restore cross-border trade.

Pakistani officials have also confirmed contacts aimed at resolving issues related to border management and security arrangements.

Traders and LPG industry representatives fear that if imports from Iran are not restored soon, the situation could deteriorate further as winter approaches, increasing the difficulties faced by households.

LPG is widely used for cooking, water heating and other domestic needs, particularly in areas without access to piped natural gas. Any prolonged disruption in supplies and further price increases are therefore likely to place additional pressure on household budgets.