LPG shortage worsens after supply issues

Lahore has experienced an intensifying LPG shortage as supplies from Iran have been disrupted, according to traders. Pakistan imports approximately 7,000 metric tons of LPG daily from Iran, with a substantial portion entering through the Gabd-Rimdan point, as reported by Shamsul Haq, the former president of the Gwadar Chamber of Commerce and Industry.

Haq disclosed that these imports have been halted, and more than 1,000 containers of Pakistani goods, including potatoes, bananas, and rice, bound for Iran, remain stranded. However, exports of perishable items were later resumed. Traders noted that the price of a 12 kg LPG cylinder surged from 4,500 Pakistani rupees (USD16) to 7,000 rupees (USD25) within days and may continue to rise if the disruptions continue.

Hundreds of trucks, including LPG tankers, are stalled on both sides of the border, Haq reported. The Quetta Chamber of Commerce and Industry advised its members to refrain from placing new orders with Iran until further notice. Truck drivers stranded at the supply route have been enduring difficult conditions with limited access to essential amenities.

Pakistan's total trade with Iran reached around USD2.8 billion in the 2023-24 fiscal year, including about USD684 million in Pakistani exports, according to the Federation of Pakistan Chambers of Commerce and Industry. Irfan Khokhar, Chairman of the Pakistan LPG Association, cautioned that shortages and price hikes could worsen, as LPG prices vary significantly across the country, ranging from 7,000 rupees in Balochistan to 8,200 rupees in Skardu.

Lahore resident Farhat Abbas revealed he paid 250 rupees per kg for LPG before the closure but now pays 500-600 rupees per kg. Consumers worry that shortages and rising prices could worsen as winter approaches. During a recent visit to Tehran to discuss the US-Iran war, Pakistan's army chief also addressed issues with Iranian leaders. Iran's foreign ministry announced that consultations to resume trade were ongoing.