LPG hits record Rs600 a kg amid shortages

Dawn reported on October 21 that LPG prices in Pakistan’s open market have climbed to as much as Rs600 per kg in hilly areas and Rs500 in Punjab and Khyber Pakhtunkhwa. The October rate set by the Oil and Gas Regulatory Authority is Rs279 per kg, while a domestic cylinder is selling for up to Rs7,200 in hilly areas, compared with the official Rs3,350 price.

The report links the surge to an abrupt halt in trading with Iran, which has cut supplies, while daily demand of 4,000-4,500 tonnes can rise to 6,000-7,000 tonnes in peak winter. Pakistan produces 2,000-2,500 tonnes daily, with an equivalent volume imported or smuggled from Iran. Demand for LPG is also rising in Sui Northern Gas Pipelines Ltd and some Sui Southern Gas Company areas because of winter gas load-shedding; an industry representative urged imports and regulatory steps to address the gap between official and market rates.