LPG prices double in Pakistan open market as winter shortage deepens

Pakistan's liquefied petroleum gas market is facing severe pressure as winter approaches, with open-market prices reaching twice the official rate amid a shortage linked to the closure of the Iran border. The Oil and Gas Regulatory Authority raised the official LPG price for November to 294,075 rupees per tonne, up from 279,341 rupees in October. As a result, the official retail price of an 11.8-kilogram domestic cylinder increased by 173 rupees to 3,470 rupees, setting the official rate at 294 rupees per kilogram.

In Rawalpindi, families are returning to firewood, coal and kerosene because natural gas is available for only about six hours a day. Households are increasingly using cheaper alternatives such as discarded furniture wood and sawdust. A new domestic cylinder now sells for 13,500 Pakistani rupees, compared with 10,000 rupees earlier, while refill charges have risen from 3,000 to 5,000 rupees. Commercial cylinder refills have nearly doubled to 25,000 rupees.

“The government has to make serious efforts to control market manipulations.”

The cost of firewood and coal has also climbed. Dry firewood sells for 1,500 to 1,800 rupees per maund, while ordinary firewood costs 1,300 to 1,400 rupees. Coal is priced between 800 and 1,000 rupees per maund depending on quality, and sawdust costs around 700 rupees per maund. Residents are collecting waste wood previously dumped near Nullah Lai for cooking.

The regulator linked the producer price to Saudi Aramco-CP and the US dollar exchange rate. Saudi Aramco-CP increased by 6.47 percent compared with the previous month, while the average dollar exchange rate fell slightly by 0.12 percent, resulting in a consumer price increase of 14.73 rupees per kilogram. At least 70 percent of LPG is imported from Iran, while only 30 percent is locally produced.

Open-market LPG is selling for up to 630 rupees per kilogram, while company-operated franchises charge up to 400 rupees per kilogram. The LPG Distributors Association of Pakistan warned that the situation is serious because of the Iran border closure and called on the government to control market manipulations.

LPG marketing companies have threatened to shut down their businesses from November 16 if the private sector is sidelined in the upcoming LPG policy. The chairman of the Pakistan LPG Marketers Association warned of a strike from November 16 if the government implements the policy, and said the government should not reverse the deregulation of LPG.