Pakistan LPG shortage pushes market price as high as Rs630 per kg

Pakistan’s liquefied petroleum gas crisis has deepened as consumers face open-market prices reaching Rs630 per kilogram, more than double the newly notified official rate. The widening gap has emerged as households and businesses prepare for higher winter demand while disruptions to supplies from Iran continue to affect availability.

The Oil and Gas Regulatory Authority has fixed the LPG consumer price for November at approximately Rs294 per kilogram, compared with about Rs279 in October. The official price of an 11.8-kilogram domestic cylinder has consequently risen by around Rs174 to Rs3,470.

According to the regulator’s calculation, the monthly increase resulted primarily from a 6.47 per cent rise in the Saudi Aramco contract price used as a benchmark for LPG. A marginal 0.12 per cent decline in the average dollar exchange rate provided limited relief, leaving the final consumer price Rs14.73 per kilogram higher than the previous month.

Actual retail prices remain substantially above the notified ceiling. LPG is reportedly being sold for as much as Rs630 per kilogram in parts of the open market, while company-operated franchises are charging up to Rs400. This means many consumers are paying between Rs106 and Rs336 more per kilogram than the official rate.

A distributors’ representative linked the shortage to restrictions affecting trade through the Iran border and called for stronger action against market manipulation. He claimed that imported supplies from Iran account for about 70 per cent of the LPG available in Pakistan, with domestic production meeting the remaining share. That industry estimate has not been independently established as an official national supply figure.

Supply pressure predates the November price notification. Border disruptions have already delayed LPG movements and contributed to uneven prices across the country. The impact is particularly severe for households without piped natural gas, commercial kitchens, transport operators and residents of colder or remote regions where distribution costs are higher.

The crisis could escalate further because LPG marketing companies have threatened to suspend operations from November 16. Their association opposes provisions under consideration for a new LPG policy, arguing that private companies have not been adequately consulted and should retain a central role in importing and distributing the fuel.

Industry representatives also dispute how emergency imports have been managed. They say a petroleum development levy imposed on locally produced LPG was intended to support imports during shortages, but allege that state-owned companies have not brought in adequate supplies during the current disruption. These claims require a detailed government response and disclosure of levy collections and emergency import volumes.

For consumers, the immediate concern is enforcement. Raising the official price does not resolve shortages when LPG remains unavailable at the notified rate. Authorities will need to improve supply, monitor distributors and retailers, and publish regional availability data if they want to narrow the gap between regulated and actual prices before winter demand intensifies.