Petroleum minister blames closure of Pak-Iran border for LPG price hike

The National Assembly was informed on Monday that the closure of the Pakistan-Iran border was a significant factor contributing to the soaring prices of Liquefied Petroleum Gas (LPG) in the country. Federal Minister for Petroleum Ali Pervez Malik stated this during a response to a calling attention notice in the house. This notice, jointly moved by Aliya Kamran, Shahida Begum, and Naeema Kishwar Khan, drew attention to the urgent public concern over the unprecedented surge in LPG prices, causing widespread distress among the populace.

According to the mover of the bill, Aliya Kamran, the price of LPG in remote and northern regions was between Rs 700 to Rs 800 per kg, far exceeding the official price set by the Oil and Gas Regulatory Authority (Ogra) at Rs 280 per kg. LPG is predominantly consumed in these remote and far-off areas, where pipe gas is not accessible. The consumption of LPG and its price increase are notably higher during the winter months.

Kishwar Khan questioned the government's decision to suspend trade with Iran through the border, to which the minister explained that approximately 50 to 60 percent of the LPG consumed in the country is imported from Iran, with the remainder sourced from Qatar. However, the minister also disclosed that the supply of LPG from Qatar had been suspended due to the ongoing war between the United States and Iran.

He further stated that the government is actively reviewing the entire system and has a policy in place to obtain gas from alternative sources internationally. The minister confirmed that the official price of LPG, as prescribed by Ogra, remains at Rs 280 per kg. Nonetheless, he acknowledged that even during periods of LPG surplus supply, the gas is rarely sold at the government rate.