Fears of LPG crisis as Iran-Gulf border closures disrupt supplies
Business
Border closures between Iran and Gulf states amid regional conflict raise fears of an LPG shortage in Pakistan, with prices already surging in local markets.
LAHORE: The ongoing conflict in the Middle East and the reported closure of borders between Iran and Gulf countries have heightened fears of a potential liquefied petroleum gas (LPG) crisis in Pakistan.
Sources said prolonged hostilities could severely disrupt LPG imports, leading to a sharp supply shortfall. The Oil and Gas Regulatory Authority (OGRA) has yet to announce LPG prices for March, adding to market uncertainty.
Pakistan’s nationwide LPG consumption reaches up to 7,000 metric tons per day, while the Lahore region alone consumes between 1,400 and 1,500 metric tons daily.
In contrast, local production stands at approximately 2,000 to 2,200 metric tons per day, leaving the country heavily reliant on imports to bridge the gap.
Officials said the government typically maintains an official stock sufficient for three to four days, although private sector storage capacity allows for longer reserves.
Market sources warned that elements within the LPG sector have already begun exploiting the situation.
While the official price for February was fixed at Rs226 per kilogram, LPG is reportedly being sold in Lahore at rates ranging from Rs300 to Rs320 per kilogram.
LPG Industries Association chairman Irfan Khokhar, cautioned that the evolving war situation could trigger a broader energy crisis.
Industry stakeholders have called for swift regulatory intervention to ensure stable supply and protect consumers from price manipulation amid regional instability.
