Pakistan hit by LPG shortage as Iran halts supplies:Cylinders now selling for PKR 7,000; zero supply since Oct 17 amid West Asia War

Iran has stopped supplying LPG to Pakistan. Pakistan imports around 50% of its total LPG requirement from Iran. The halt in supplies has increased difficulties for ordinary people. The price of a 12-kilogram cylinder has risen from 4,500 Pakistani rupees to PKR 7,000 rupees within just a few days. This means the price has increased by 2,500 Pakistani rupees. Gas supplies halted after border closure Two major border crossings between Pakistan and Iran-Gabd-Rimdan and Taftan-were closed on 17 October. The government of Pakistan’s Balochistan province cited security concerns and the need to curb smuggling as the reasons, while Iran referred to technical difficulties. According to the Pakistan LPG Association, around 7,000 metric tonnes of LPG enter Pakistan from Iran every day. Shamsul Haq, former president of the Gwadar Chamber of Commerce and Industry, said that more than 4,000 tonnes of gas enters the country daily through the Gabd-Rimdan border alone. This supply is currently suspended. Imports from Oman and Iraq also affected Pakistan imports around 70% of its LPG requirements from abroad. In addition to Iran, gas also comes from Iraq and Oman. According to Pakistan’s Petroleum Minister Ali Pervaiz Malik, the country requires around 6,500 to 7,000 tonnes of LPG every day. Of this, 2,000 to 2,500 tonnes are produced domestically, while the remaining requirement is met through imports. However, imports from Iraq and Oman have also been affected by the disruption in the Strait of Hormuz caused by the war involving Iran. Cylinders being sold at more than double the government-set price Pakistan’s Oil and Gas Regulatory Authority (OGRA) has set the price of an 11.8-kilogram domestic LPG cylinder at 3,296 Pakistani rupees. Despite this, cylinders are being sold in the market at more than double the government-set price. According to Irfan Khokhar, president of the Pakistan LPG Association, a 12-kilogram cylinder is selling for around 7,000 Pakistani rupees in Balochistan, 7,500 rupees in Lahore and up to 8,200 rupees in Skardu. Government says situation will improve soon Pakistan Petroleum Minister Ali Pervaiz Malik said the government would import LPG itself and make it available in the market. He expressed hope that prices would start improving over the next two to three days. Speaking on a Geo News programme, Malik said the price of LPG should be between 400 and 425 Pakistani rupees per kilogram. He warned that action would be taken against those charging higher prices. The minister also said the government would make the process of setting LPG prices transparent. Malik claimed that the difference between market and local LPG prices amounted to around 30 billion Pakistani rupees. He alleged that some people were obtaining stay orders from the courts and charging higher prices. The minister said the prime minister had asked the attorney general to take steps to argue the remaining cases and have the stay orders lifted. Hundreds of trucks stranded at the border Hundreds of trucks, including LPG tankers, are stranded on both sides of the Pakistan-Iran border because of the closure. According to Shamsul Haq, more than 1,000 Pakistani containers carrying potatoes, bananas and rice were supposed to be sent to Iran. Truck drivers said they had been waiting for the border to open for several days and were not receiving basic facilities properly. Driver Abdul Ghani Baloch said they had been stranded there for more than a week.