LPG Price Surge Pushes Cafes to Coal

LPG prices in Pakistan have experienced a sharp increase, causing tea cafes in Karachi to revert to using coal. The surge in fuel costs and fierce competition has left little room for cafes to raise their prices. A survey revealed that numerous cafes in areas like Gulistan-e-Johar, North Karachi, and Federal B Area have returned to coal as a more affordable option.

The higher cost of LPG, coupled with increased energy expenses for small businesses, has made it challenging for cafe owners to sustain their operations. The Oil and Gas Regulatory Authority recently raised LPG prices by Rs12.89 per kilogram, with an 11.8kg domestic cylinder now costing Rs152.01 more. Cafe owners have reported positive customer feedback on tea prepared on coal, with some noting it is now a necessity.

One owner reported significant savings by switching to coal, while another attributed the shift to the inability to increase tea prices due to intense competition. Energy experts pointed out that fuel costs for small food businesses are rising faster than menu prices, leaving little room to absorb the cost shock. The chairman of the LPG Distributors Association blamed the price increase on regional tensions, black marketing, a lack of filling stations, and an unfair pricing formula. He called for a revision of the LPG pricing mechanism.