Severe LPG crisis in Pakistan: supply halt at Taftan border pushes price to 700 rupees a kilo

Pakistan is facing a severe shortage of liquefied petroleum gas (LPG). With gas supplies through the Taftan border halted, LPG prices have risen several-fold in different parts of the country. In some places, gas is being sold at 700 rupees per kilogram.

The halt in supply has emerged as the main cause of the crisis. Around 7,000 metric tons of LPG used to be imported into Pakistan from Iran every day through the Taftan border. With that supply stopped, a shortage of gas has developed in the market.

Under the government-set price, a kilogram of LPG currently costs 294 rupees. Consumers complain, however, that gas is not available in the market at the official price.

The regional picture makes the rise clearer. In Quetta, Balochistan, LPG is selling at 530 to 700 rupees per kilogram. In Karachi and Lahore the price is 520 to 580 rupees. In Peshawar, the price has reached 600 to 650 rupees per kilogram.

Consumers in Lahore say they are having to buy gas at almost double the government-set price. They have demanded urgent government intervention to control the market in this situation.

Meanwhile, speaking at the convocation of a private university in Lahore, Pakistan's Petroleum Minister Ali Parvez Malik said uncertainty centred on the Strait of Hormuz had affected the international oil and gas market. He claimed, however, that the government had successfully dealt with the situation over the past six months.

On the other hand, Ali Haider, senior vice-president of the Pakistan LPG Marketers Association, said a proposal on LPG pricing was being sent to the prime minister. He claimed that if the proposed policy took effect, LPG prices could rise by a further 25 to 30 percent.