LPG Price in Pakistan Jumps to Rs7,000 Per Cylinder as Iran Border Closure Halts Imports

Pakistan's LPG shortage has worsened dramatically after the closure of two key border crossings with Iran halted imports, with the price of a 12-kilogram domestic cylinder jumping from Rs4,500 to Rs7,000 within days, traders told Reuters on Friday.

Main News Report

The Gabd-Rimdan and Taftan crossings were shut on 17 October, cutting off the route through which Pakistan imports about 7,000 metric tons of LPG a day from Iran, according to the Pakistan LPG Association. More than 4,000 tons a day entered through Gabd-Rimdan alone, Shamsul Haq, former president of the Gwadar Chamber of Commerce and Industry, told Reuters.

"These imports are at halt," Haq said, adding that more than 1,000 Pakistani containers carrying potatoes, bananas and rice for Iran were also stranded. The Gabd-Rimdan crossing reopened on Wednesday for Pakistani exports of perishable goods, but fuel imports remain blocked.

Traders said the price of a 12kg LPG cylinder had risen to Rs7,000 from Rs4,500 within days and could climb further if the disruptions persist. Pakistan LPG Association Chairman Irfan Khokhar said a cylinder now sells for about Rs7,000 in Balochistan, Rs7,500 in Lahore and Rs8,200 in Skardu.

Lahore resident Farhat Abbas said he paid Rs250 per kilogram for LPG before the border closure but now pays Rs500-600 per kilogram. Hundreds of trucks, including LPG tankers, are stranded on both sides of the border, and the Quetta Chamber of Commerce and Industry has advised members to stop placing new orders with Iran until further notice.

"We have been standing here for over a week waiting for the border to open," said Abdul Ghani Baloch, a driver stuck at one of the crossings, describing harsh conditions with limited access to basic amenities.

Background Context

The two crossings have been closed since 17 October, when Pakistan suspended trade through the Gabd-Rimdan and Taftan corridors. The Balochistan government said the temporary closure was intended to address security concerns and curb smuggling, while Iran's foreign ministry cited technical issues. Tehran has since described the closure as temporary, with reopening talks said to be underway.

LPG is the primary cooking fuel for millions of Pakistani households, particularly in areas without piped gas connections, and the shortage is arriving just as winter approaches — the season when demand for heating fuel peaks. Pakistan-Iran trade totalled about $2.8 billion in the 2023-24 fiscal year, including roughly $684 million of Pakistani exports, according to the Federation of Pakistan Chambers of Commerce and Industry.

Reactions and Statements

Irfan Khokhar, chairman of the Pakistan LPG Association, warned that shortages and price increases could worsen, noting that "LPG is being sold at different prices in Pakistan" and that higher prices were feeding through to other goods.

Iran's foreign ministry said consultations on resuming trade were underway. Pakistan's army chief visited Tehran this week and discussed border issues with Iranian leaders, raising hopes that the crossings could reopen soon.

The development contrasts with petrol prices in Pakistan, which were cut by Rs1.60 per litre to Rs377.71 in Friday's fortnightly review, offering motorists modest relief while cooking fuel costs soar.

Why This News Matters

The LPG price surge hits household budgets directly at a time when inflation remains a top concern for Pakistani families. A cylinder that cost Rs4,500 days ago now costs Rs7,000 — and over Rs8,000 in northern areas — an increase few families can absorb easily.

With winter approaching, demand for LPG will only rise, and traders warn that prolonged disruption at the border could deepen shortages nationwide. The stranded trucks and containers also signal broader damage to Pakistan-Iran trade, a corridor worth nearly $3 billion a year.

Future Developments

All eyes are now on the reopening talks between Islamabad and Tehran following the army chief's Tehran visit. If the Gabd-Rimdan and Taftan crossings reopen quickly, LPG imports could resume and prices stabilise — but traders caution that every extra week of closure risks pushing prices higher still.

Regulators and provincial governments may also face pressure to clamp down on profiteering as cylinder prices vary widely between regions. PakInsight Hub will continue to track the border situation and LPG prices.

Sources

Reuters: Pakistan LPG shortage worsens after border closure, traders say

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