Pakistan LPG shortage worsens after border closure, traders say
- LPG prices in Pakistan have surged, with a 12kg cylinder now costing up to 7,000 rupees, as border closures with Iran halt crucial daily imports
Pakistan faces severe LPG shortages and soaring prices due to the closure of key border crossings with Iran, impacting consumers and trade, with fears of worsening conditions.
- Reasons for Pakistan-Iran border closures.
- Impact on LPG prices and daily import volumes.
- Stranded trucks and wider trade disruptions.
- Consumer fears of worsening shortages.
LAHORE: The closure of two key border crossings between Pakistan and Iran has halted liquefied petroleum gas (LPG) imports into Pakistan, causing shortages and driving up prices, traders said.
The Gabd-Rimdan and Taftan crossings were closed on October 17, with Pakistan and Iran giving different reasons for the move. The Balochistan government, in the Pakistani province where the crossings are located, said the temporary closure was intended to address security concerns and curb smuggling, while Iran’s foreign ministry cited technical issues.
Pakistan imports about 7,000 metric tons of LPG a day from Iran, according to the Pakistan LPG Association.
More than 4,000 tons a day enters through Gabd-Rimdan alone, said Shamsul Haq, former president of the Gwadar Chamber of Commerce and Industry.
“These imports are at halt,” Haq said.
PBIF chief expresses concern over LPG prices
He added that more than 1,000 Pakistani containers carrying potatoes, bananas and rice for Iran were also stranded. However, the Gabd-Rimdan crossing reopened on Wednesday for Pakistani exports of perishable goods.
Traders said the price of a 12 kg LPG cylinder had risen to 7,000 Pakistani rupees ($25) from 4,500 rupees ($16) within days and could climb further if the disruptions persist.
Hundreds of trucks, including LPG tankers, are stranded on both sides of the border, Haq said. The Quetta Chamber of Commerce and Industry has advised members to stop placing new orders with Iran until further notice.
Truck drivers stuck at the crossings said they had been waiting for days in harsh conditions with limited access to basic amenities.
“We have been standing here for over a week waiting for the border to open,” said Abdul Ghani Baloch, one affected driver.
Pakistan-Iran trade totalled about $2.8 billion in the 2023-24 fiscal year, including roughly $684 million of Pakistani exports, according to the Federation of Pakistan Chambers of Commerce and Industry.
Pakistan LPG Association Chairman Irfan Khokhar warned shortages and price increases could worsen.
“Already, LPG is being sold at different prices in Pakistan,” he said.
A 12 kg cylinder sells for about 7,000 rupees in Balochistan, 7,500 rupees in Lahore and 8,200 rupees in Skardu, he said, adding that higher LPG prices were feeding through to other goods.
Lahore resident Farhat Abbas said he paid 250 rupees per kg for LPG before the border closure but now pays 500-600 rupees per kg.
Consumers fear shortages and rising prices could worsen as winter approaches.
Pakistan’s army chief visited Tehran this week and discussed border issues with Iranian leaders. Iran’s foreign ministry said consultations on resuming trade were underway.
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