Pakistan's liquefied petroleum gas (LPG) supplies have come under pressure after the closure of key border crossings with Iran halted imports, pushing cylinder prices sharply higher and raising concerns over further increases ahead of winter.
Rueters citing Pakistani traders reported that the price of a 12-kg LPG cylinder has climbed to 7,000 Pakistani rupees ($25) from 4,500 rupees ($16) within days of the disruption. They warned that prices could rise further if cross-border trade does not resume fully.
The Gabd-Rimdan and Taftan crossings were closed on October 17, disrupting a key supply route for Pakistan's LPG market. The Balochistan government said the temporary closure was aimed at addressing security concerns and curbing smuggling, while Iran's foreign ministry cited technical issues.
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Pakistan imports around 7,000 metric tons of LPG daily from Iran, according to the Pakistan LPG Association. Reuters qouting Shamsul Haq, former president of the Gwadar Chamber of Commerce and Industry reported that more than 4,000 metric tons enters through the Gabd-Rimdan crossing alone. He said that these imports are at halt.
Hundreds of trucks, including LPG tankers, remain stranded on both sides of the border. The disruption has also affected other commodities, with more than 1,000 Pakistani containers carrying potatoes, bananas and rice for Iran reportedly stuck at the crossings.
The Gabd-Rimdan crossing reopened on Wednesday for Pakistani exports of perishable goods, but the broader disruption to trade has continued to weigh on supplies. The Quetta Chamber of Commerce and Industry has advised its members to stop placing new orders with Iran until further notice.
The impact is already being felt by households and businesses. Reuters reported that Irfan Khokhar, chairman of the Pakistan LPG Association, said a 12-kg cylinder was selling for around 7,000 rupees in Balochistan, 7,500 rupees in Lahore and 8,200 rupees in Skardu.
“Already, LPG is being sold at different prices in Pakistan,” Khokhar said, warning that higher fuel costs were also feeding into the prices of other goods.
Lahore resident Farhat Abbas told Reuters that the price he paid for LPG had doubled since the border closure. He said he previously paid 250 rupees per kg but was now paying between 500 and 600 rupees.
Truck drivers stranded at the crossings have also reported difficult conditions, including limited access to basic amenities. “We have been standing here for over a week waiting for the border to open,” said Abdul Ghani Baloch, one of the affected drivers.
Pakistan-Iran trade totalled around $2.8 billion in the 2023-24 fiscal year, including approximately $684 million in Pakistani exports, according to the Federation of Pakistan Chambers of Commerce and Industry.
With winter approaching, consumers face the risk of worsening shortages and higher LPG costs if imports remain disrupted.
Pakistan's army chief, during a visit to Tehran this week to discuss the US-Iran war, also held talks with Iranian leaders on border issues. Iran's foreign ministry said consultations on resuming trade were underway.
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