Pakistan-Iran Border Reopens, LPG Prices Set to Fall
LPG Prices Rise in Pakistan Amid Supply Disruptions and Black Marketing
GWADAR: The Pakistan-Iran border crossing at Gabd-Rimdan reopened on Saturday from both sides after remaining closed for several days, raising hopes of improved Liquefied Petroleum Gas (LPG) supplies and a decline in prices across Pakistan.
According to reports, thousands of containers loaded with LPG are expected to enter Pakistan through the crossing in the coming hours, potentially easing supply constraints and bringing down prices by the evening.
Mir Naveed Kalamati, president of the Gwadar Chamber of Commerce and Industry, raised his voice against the border closure and highlighting its impact on trade and the supply of essential commodities.
The reopening is expected to restore the movement of LPG consignments from Iran and provide relief to consumers who have faced rising prices amid supply disruptions.
LPG Distributors Association of Pakistan Chairman Irfan Khokhar had earlier warned that prices could increase further due to disruptions in supplies following the closure of the Iranian border. He had also expressed concern over the sale of LPG above officially notified rates and the unchecked black marketing of the commodity.
The reopening of the Gabd-Rimdan crossing is expected to improve the flow of imported LPG into Pakistan. However, the extent and timing of any price reduction will depend on the actual arrival of consignments, the availability of supplies in local markets and the response of distributors.
Market participants will be closely watching whether the resumption of cross-border trade translates into lower LPG prices for consumers in the coming days.
LPG prices have increased in Pakistan amid supply disruptions caused by the closure of the Iranian border, while concerns are growing over black marketing and the failure to enforce official prices.
LPG Distributors Association of Pakistan confirmed LPG price hike
Earlier, Irfan Khokhar, chairman of the LPG Distributors Association of Pakistan, confirmed the price hike because of disruptions in supply following the closure of the Iran border, which has affected LPG imports from the neighbouring country.
However, Khokhar said weak enforcement by the regulatory authorities was also contributing to the problem, as LPG was being sold above the official price despite government-approved rates already providing distributors with a reasonable profit margin.
He said most of Pakistan’s LPG supply came from local refineries and oil and gas fields, but the product was being sold on the black market without effective checks by the authorities.
Pakistan relies on domestic production from refineries and oil and gas fields, as well as imports from Iran, to meet its LPG requirements.
The association has raised concerns that supply disruptions, coupled with unchecked overpricing, could place an additional burden on consumers if the situation persists.
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