LPG industry demands daily or weekly pricing as rates surge amid Iran border closure

Pakistan’s LPG industry is seeking daily or weekly price adjustments after rates rose by Rs100 per kilogram over the weekend, Profit by Pakistan Today reported. Industry representatives say the monthly pricing system does not keep pace with import costs and want LPG prices separated from Saudi Aramco’s Contract Price.

Supply has been affected by the closure of the Rahimdad-250 crossing and changes to exemptions for Iranian imports, with more than 4,500 tonnes reportedly held up across the border. The industry says higher freight and insurance costs have also pushed some imports to about $300 per tonne above the benchmark.

Stakeholders say the existing mechanism discourages LPG imports by companies including Sui Southern Gas Company and Sui Northern Gas Pipelines Limited, amid concerns about financial losses and accountability investigations. They have also called for a review of the marketing margin, digital monitoring of supplies and daily publication of prices by Ogra.