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LPG crisis looms in Pakistan amid Iran-Israel conflict: prices may soar to record highs

Published on: June 18, 2025 3:54 PM

A major LPG (liquefied petroleum gas) shortage is expected across Pakistan as the ongoing Iran-Israel conflict disrupts cross-border supply routes. The LPG Industries Association has urged the government to take swift action to prevent a national energy crisis.

Chairman Irfan Khokhar appealed to Prime Minister Shehbaz Sharif and Energy Minister Ali Pervaiz Malik, warning that local LPG production of 60,000–70,000 metric tons per month falls short of Pakistan’s daily need of 6,000 metric tons. He emphasized that immediate imports and expanded storage are essential to avoid a major shortfall.

Due to border closures, imports from Iran have come to a halt, worsening the supply gap. Khokhar cautioned that the shortage is already leading to price manipulation. Household LPG cylinders could soon cost over PKR 6,000, with per-kilogram prices rising to PKR 450–500. Commercial cylinder rates may climb to PKR 20,000–23,000.

Pakistan’s storage facilities are also lacking. At present, Port Qasim’s terminals—operated by SSGC and EVTL—can store only 13,000 metric tons. In contrast, neighboring Bangladesh has a storage capacity of 300,000 metric tons. Khokhar stressed the need for urgent investment in storage infrastructure to secure long-term energy stability.

He also demanded the government take control of local LPG production, currently handled by OGDCL, and adopt a transparent distribution model like that of PPL. He accused the “LPG mafia” of manipulating the market and called for state-run companies like PSO, SSGC, and PARCO to ensure fair distribution.

Khokhar advised all distributors and retailers across Pakistan to maintain full LPG stocks in the coming weeks. He warned that further delays in policy action could worsen the crisis, making life difficult for both households and businesses nationwide.

Filed Under: Business, Pakistan Tagged With: cross-border supply routes, Latest, LPG (liquefied petroleum gas) shortage, LPG Industries Association, Pakistan as the ongoing Iran-Israel conflict

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