Pakistan LPG Price Hike: Cylinder Nears Rs 7,000

Pakistan is facing a sharp increase in liquefied petroleum gas (LPG) prices following the closure of two major border crossings with Iran, disrupting a crucial source of fuel supplies and triggering shortages across the country. The price of a 12-kg LPG cylinder has reportedly surged from 4,500 Pakistani rupees to nearly 7,000 rupees within days, raising concerns among households, businesses and transport operators.

The Gabd-Rimdan and Taftan border crossings were shut on October 17, disrupting cross-border trade and leaving hundreds of trucks, including LPG tankers, stranded. Pakistan and Iran have offered different explanations for the closures, with Pakistan’s Balochistan government citing security concerns and efforts to curb smuggling, while Iran’s foreign ministry has pointed to technical issues.

Pakistan depends heavily on LPG imports from Iran, with the Pakistan LPG Association estimating that around 7,000 metric tons of the fuel enter the country daily from its neighbour. The disruption has therefore placed significant pressure on supplies, contributing to steep price increases in several Pakistani cities.

Although the Gabd-Rimdan crossing reopened on Wednesday to allow Pakistani exports of perishable goods, LPG imports remained halted, according to the report. Industry representatives have warned that shortages could deepen and prices could rise further if normal cross-border supplies do not resume.

Pakistan LPG Prices Surge as Iran Border Closures Disrupt Supplies

The closure of the two major border crossings has interrupted the movement of LPG from Iran into Pakistan, creating a supply shortage that traders say has rapidly pushed up prices.

According to traders cited in the report, the price of a 12-kg LPG cylinder has increased to approximately 7,000 Pakistani rupees, equivalent to around $25, from 4,500 rupees, or about $16, within just a few days.

The increase represents a substantial rise in the cost of a commonly used fuel product. For households and businesses already purchasing LPG at higher prices, the disruption has added further pressure to everyday expenses.

The price increases have not been uniform across Pakistan. According to Pakistan LPG Association Chairman Irfan Khokhar, a 12-kg cylinder costs around 7,000 rupees in Balochistan, 7,500 rupees in Lahore and 8,200 rupees in Skardu.

The differences between these locations indicate that consumers are facing varying costs depending on where they purchase LPG. The reported figures also highlight how supply constraints can affect regional markets differently.

Traders have warned that the situation could deteriorate if the border disruptions continue. With imports halted and trucks unable to move normally across the crossings, suppliers may face additional difficulties in meeting demand.

Why Pakistan’s LPG Supply Has Been Hit by the Iran Border Closure

Pakistan imports approximately 7,000 metric tons of LPG daily from Iran, according to the Pakistan LPG Association. The scale of these imports makes the border closures a significant disruption to the country’s fuel supply chain.

Shamsul Haq, former president of the Gwadar Chamber of Commerce and Industry, said more than 4,000 tons of LPG entered Pakistan each day through the Gabd-Rimdan crossing alone before the disruption.

Haq said these imports had come to a halt following the closure.

The figures illustrate the importance of the Gabd-Rimdan route to the movement of LPG into Pakistan. When such a large daily volume of fuel is interrupted, traders and distributors can face difficulties maintaining normal supplies.

The closures also affect the movement of other goods between the neighbouring countries. Hundreds of trucks have reportedly remained stranded on both sides of the border, including tankers carrying LPG.

Although one crossing has partially reopened for the movement of Pakistani exports, the continued halt in LPG imports means that the immediate supply problem remains unresolved, according to the report.

Why Were the Gabd-Rimdan and Taftan Crossings Closed?

The Gabd-Rimdan and Taftan crossings were shut on October 17, with Pakistan and Iran giving different explanations for the decision.

The government of Balochistan, the Pakistani province where the crossings are located, said the temporary closure was intended to address security concerns and curb smuggling.

Iran’s foreign ministry, meanwhile, cited technical issues as the reason for the disruption, according to the report.

The differing explanations highlight the uncertainty surrounding the border restrictions. The supplied information does not establish a single explanation accepted by both governments.

The closures have had consequences beyond LPG supplies, affecting the movement of commercial vehicles, agricultural products and other goods involved in bilateral trade.

For traders, the immediate concern is the resumption of normal cross-border movement. Until supplies can move more consistently, importers and distributors may continue to face logistical challenges that affect prices and availability in Pakistan.

Thousands of Tons of LPG Imports Halted at the Border

The scale of the disruption is particularly significant at the Gabd-Rimdan crossing, where more than 4,000 tons of LPG reportedly entered Pakistan each day before the closure.

Haq said those imports had stopped, leaving a major supply channel unavailable to Pakistani buyers.

The border restrictions have also left hundreds of trucks stranded, including LPG tankers waiting to cross. The situation has created delays for drivers and traders who depend on regular movement between the two countries.

The reopening of Gabd-Rimdan on Wednesday offered some relief for exporters by allowing Pakistani shipments of perishable goods to move into Iran. However, LPG imports remained suspended, meaning that the reopening did not immediately restore the fuel supply described in the report.

The distinction is important because the movement of exports and the arrival of imports are separate parts of cross-border trade. Even when selected shipments are permitted, other goods may remain affected by restrictions or operational difficulties.

As a result, Pakistani LPG suppliers continue to face uncertainty about when the usual volume of Iranian fuel will become available again.

Pakistan LPG Prices Differ Across Balochistan, Lahore and Skardu

The reported price of a 12-kg LPG cylinder varies considerably across different parts of Pakistan, reflecting the uneven impact of the supply disruption.

The figures were provided by Pakistan LPG Association Chairman Irfan Khokhar. They show that the price in Skardu is higher than the reported prices in Balochistan and Lahore.

Khokhar warned that supply shortages and rising prices could become more severe if the border disruptions persist. He also said LPG was already being sold at different prices across Pakistan.

Regional differences matter because consumers do not all face the same cost for the same quantity of fuel. Where supplies are constrained and distribution becomes more difficult, local prices may vary, although the supplied report does not detail the specific reasons for the difference in each location.

The price increases are also affecting consumers who purchase LPG by weight rather than in cylinders. The reported experience of a Lahore resident illustrates how sharply the cost of the fuel has increased for some buyers.

Consumers Report LPG Costs Doubling in Lahore

The effects of the supply disruption are being felt directly by consumers. Farhat Abbas, a resident of Lahore, said he previously paid 250 Pakistani rupees per kilogram for LPG but now pays between 500 and 600 rupees per kilogram.

His account highlights the pressure that rising fuel costs can place on household budgets. The increase means that consumers who rely on LPG must spend substantially more to purchase the same amount of fuel.

The impact is not limited to households. Businesses that depend on LPG may also face higher operating expenses, particularly if they are unable to secure supplies at previous prices.

Khokhar warned that the increase in LPG prices was also pushing up the cost of other goods. Higher fuel costs can add to expenses across supply chains, particularly where businesses depend on fuel for their operations or transportation.

The report does not quantify the overall effect on consumer prices, but industry representatives have warned that prolonged disruption could have wider economic consequences.

Winter Approaches as Pakistan Faces Further LPG Shortage Concerns

The approaching winter has added to concerns about the possibility of further LPG shortages and price increases.

Consumers are worried that if the border restrictions continue, the interruption to Iranian supplies could place additional pressure on an already strained market. Traders and industry representatives have warned that prices may rise further if normal imports do not resume.

The combination of reduced availability and higher prices creates uncertainty for households and businesses that depend on LPG. Consumers may have to pay more for fuel, while traders must manage the difficulties associated with disrupted imports and stranded vehicles.

Pakistan LPG Association Chairman Irfan Khokhar has cautioned that the situation could worsen if the disruption persists. His warning reflects concerns within the industry about the relationship between import volumes, local availability and retail prices.

The duration of the border disruption is therefore likely to remain a key factor in determining how the market develops. The supplied report does not specify when LPG imports are expected to resume fully.

Hundreds of Trucks Stranded as Cross-Border Trade Is Disrupted

The border closures have affected a wide range of commercial shipments, not just LPG. According to Haq, hundreds of trucks carrying goods between Pakistan and Iran have been stranded on both sides of the border.

More than 1,000 Pakistani containers carrying potatoes, bananas and rice destined for Iran were also held up, he said.

The delays have created problems for exporters, particularly businesses transporting perishable agricultural products. The reopening of the Gabd-Rimdan crossing on Wednesday allowed Pakistani exports of such goods to move again, but LPG imports remained halted.

The wider disruption has prompted the Quetta Chamber of Commerce and Industry to advise its members to suspend new orders from Iran until further notice.

That advice reflects uncertainty over when shipments can move normally and whether businesses can rely on predictable delivery schedules. When border operations are interrupted, traders may face difficulties planning purchases, transportation and sales.

The disruption also affects truck drivers waiting to cross the border. Drivers have reported spending days in difficult conditions while awaiting the reopening of routes.

Abdul Ghani Baloch, one of the affected drivers, said he had been waiting for more than a week for the border to open. He described the prolonged wait as a challenge for drivers caught up in the disruption.

The stranded vehicles and delayed cargo underline how border restrictions can affect multiple parts of the economy at the same time, from fuel imports to agricultural exports and commercial transportation.

Pakistan-Iran Trade Worth Around $2.8 Billion

The border closures threaten a significant trading relationship between Pakistan and Iran. According to the Federation of Pakistan Chambers of Commerce and Industry, bilateral trade totalled approximately $2.8 billion during the 2023-24 fiscal year.

Pakistani exports accounted for around $684 million of that total, according to the figures cited in the report.

The trade relationship includes the movement of a range of goods across the border. The current disruption has affected LPG imports into Pakistan as well as Pakistani agricultural shipments intended for the Iranian market.

For businesses operating across the border, prolonged restrictions can create uncertainty over deliveries and future orders. The Quetta Chamber of Commerce and Industry’s advice to suspend new orders from Iran reflects those concerns.

The economic consequences extend beyond individual traders because cross-border supply chains depend on regular transportation and predictable access to markets. When trucks are stranded and imports are halted, companies may face delays, additional costs and difficulties fulfilling commercial commitments.

The reported trade figures provide context for the importance of the relationship, although they do not quantify the financial losses caused by the latest closures.

Pakistan’s Army Chief Discusses Border Issues During Iran Visit

Amid the disruption, Pakistan’s army chief visited Tehran during the week and discussed border issues with Iranian leaders.

Iran’s foreign ministry said consultations on resuming trade were underway. The statement indicates that discussions about restoring cross-border commercial activity were continuing, although the report does not provide a timeline for a full resumption of LPG imports.

The diplomatic contacts come as traders and consumers face the consequences of the interrupted supply chain. The continued halt in LPG imports remains a key concern for the Pakistani market, where prices have increased sharply in several locations.

The outcome of the consultations could be important for businesses waiting for shipments to move again. However, the supplied information does not confirm that an agreement has been reached to reopen both crossings or restart all categories of trade.

Until normal operations resume, the uncertainty surrounding the border situation is likely to remain a concern for traders, transport operators and consumers affected by the shortage.

How the Iran Border Disruption Is Affecting Pakistan

The reported consequences of the border closures span several areas of Pakistan’s economy.

• Fuel supplies: Pakistan’s daily LPG imports from Iran have been disrupted, including more than 4,000 tons that normally enter through Gabd-Rimdan.
• Higher prices: The reported cost of a 12-kg LPG cylinder has increased from 4,500 rupees to around 7,000 rupees, with higher prices reported in Lahore and Skardu.
• Household pressure: Consumers have reported paying substantially more for LPG by weight.
• Transport delays: Hundreds of trucks, including LPG tankers, have been stranded on both sides of the border.
• Agricultural exports: More than 1,000 Pakistani containers carrying potatoes, bananas and rice destined for Iran were held up.
• Business uncertainty: The Quetta Chamber of Commerce and Industry has advised members to suspend new orders from Iran until further notice.
• Trade concerns: The disruption threatens commercial activity between two countries whose bilateral trade totalled around $2.8 billion in the 2023-24 fiscal year.

These developments show how a border disruption can affect fuel availability, retail prices, transportation and commercial activity simultaneously. The extent of the continuing impact will depend in part on how quickly normal cross-border movement resumes.

Frequently Asked Questions (FAQs)

Why are LPG prices rising in Pakistan?

LPG prices have risen following the closure of the Gabd-Rimdan and Taftan border crossings with Iran on October 17. The closures disrupted supplies from a major source of imported LPG, contributing to shortages and higher prices.

How much does a 12-kg LPG cylinder cost in Pakistan?

Traders reported that a 12-kg LPG cylinder had risen to around 7,000 Pakistani rupees from 4,500 rupees within days. Pakistan LPG Association Chairman Irfan Khokhar reported prices of around 7,000 rupees in Balochistan, 7,500 rupees in Lahore and 8,200 rupees in Skardu.

How much LPG does Pakistan import from Iran daily?

According to the Pakistan LPG Association, Pakistan imports approximately 7,000 metric tons of LPG daily from Iran. More than 4,000 tons reportedly enter through the Gabd-Rimdan crossing alone.

When were the Iran-Pakistan border crossings closed?

The Gabd-Rimdan and Taftan crossings were shut on October 17. Pakistan’s Balochistan government cited security concerns and efforts to curb smuggling, while Iran’s foreign ministry cited technical issues.

Has the border reopened?

The Gabd-Rimdan crossing reopened on Wednesday to allow Pakistani exports of perishable goods. However, LPG imports remained halted, according to the report. The supplied information does not confirm a full resumption of all cross-border trade.

How are consumers being affected by the LPG shortage?

Consumers are facing substantially higher fuel costs. A Lahore resident quoted in the report said the price he paid for LPG had risen from 250 rupees per kilogram to between 500 and 600 rupees per kilogram.

Could LPG prices rise further in Pakistan?

Industry representatives have warned that prices could increase further if the border disruptions continue. Pakistan LPG Association Chairman Irfan Khokhar said shortages and rising prices could worsen if normal supplies do not resume.

Conclusion

Pakistan is facing a growing LPG supply challenge following the closure of two major border crossings with Iran. The disruption has halted significant daily imports, contributed to sharp price increases and left hundreds of trucks stranded, while businesses have also reported interruptions to cross-border trade.

The reported price of a 12-kg LPG cylinder has climbed from 4,500 Pakistani rupees to around 7,000 rupees, with prices reaching 7,500 rupees in Lahore and 8,200 rupees in Skardu. Consumers are also reporting higher prices for LPG purchased by weight, adding to pressure on household budgets.

Although the Gabd-Rimdan crossing has reopened for Pakistani exports of perishable goods, LPG imports remain halted, according to the report. Pakistan and Iran are holding consultations on resuming trade, but the timing of a full restoration of supplies remains unclear.

With winter approaching, traders and consumers are concerned that prolonged disruption could lead to further shortages and price increases. The next developments at the border will be important for Pakistan’s LPG market, bilateral trade and the businesses and households affected by the supply interruption.