LPG Prices Drop by Rs30–40 per Kilogram After Iranian Supplies Resume Temporarily

LAHORE: Liquefied petroleum gas (LPG) prices have declined by Rs30 to Rs40 per kilogram over the past two days following the temporary resumption of supplies from Iran, with further reductions expected in the coming days.

According to the LPG Distribution Association, the temporary restoration of Iranian LPG shipments has provided some relief to consumers. However, the threat of an LPG shortage during the winter season continues to loom over the country.

The association said Pakistan had allowed LPG consignments loaded before October 16 and already present at the Pakistan-Iran border to enter the country. Only tankers loaded at Iranian refineries by October 16 have been permitted to cross the border.

The quantity of LPG in these consignments is estimated at 8,000 to 9,000 tonnes, enough to meet Pakistan’s demand for only three days. The association warned that this temporary supply would not be sufficient to resolve the looming LPG crisis.

It added that LPG prices had fallen by Rs30 to Rs40 per kilogram in the past two days, with a further reduction of around Rs30 per kilogram expected over the next two to three days.

The association has proposed that the federal government restore, for six months, an exemption under the existing mechanism for the import of LPG from Iran through an Electronic Import Form (EIF). It said the proposal had been submitted to the federal government and the prime minister’s adviser had been briefed on the potential situation.

The association urged the government to restore the exemption for six months to ensure sufficient supplies to meet increased demand during the winter season.

It warned that if LPG supplies from Iran were not fully restored, prices could surge to Rs1,000 per kilogram during winter, placing an additional financial burden on consumers.