Pakistan LPG Prices Surge Amid Iranian Supply Disruptions
The Government of Pakistan is considering daily LPG pricing to combat price surges and hoarding caused by border closures and supply shortages.
Liquefied petroleum gas (LPG) prices in Pakistan have surged to as high as Rs750 per kilogram in northern regions and Khyber Pakhtunkhwa, far exceeding the official rate of Rs279.34 set by the Oil and Gas Regulatory Authority (OGRA). The crisis stems from declining supplies following the closure of the Taftan border due to tensions between Iran and the United States. Because Pakistan imports roughly 70 percent of its LPG, these disruptions have forced low-income families in rural areas and around Peshawar to rely on firewood.
To address price volatility and hoarding ahead of the winter gas crunch, the Government of Pakistan is considering replacing the current monthly pricing formula with a daily or weekly rate-setting mechanism. While OGRA has proposed a crackdown on sellers for overcharging, officials have hesitated to enforce these measures for fear that strikes could further interrupt distribution.
LPG Standing Committee Convener Ali Haider expects prices to drop by up to Rs50 within two days. This anticipated decrease follows the authorization for approximately 900 Iranian LPG tankers, loaded by October 16, to enter the country and stabilize overall supplies.
