KARACHI: Liquefied petroleum gas prices in Karachi have climbed above 500 rupees per kilogram, with the shortage worsening across Pakistan after the government halted trade with Iran, distributors said Wednesday.
LPG is selling for as much as 540 rupees per kilogram in the city, up 80 rupees in the past 24 hours.
Distributors warned that prices could rise another 150 to 200 rupees per kilogram within two to three days if supplies from Iran stay cut off. They said the shortage would benefit hoarders and black market sellers.
About 80 percent of Pakistan’s imported LPG comes in through border trade, according to distributors. They said 4,500 to 5,000 tons of daily supply is at risk, out of national consumption of about 7,000 tons a day.
The Ministry of Commerce issued a memorandum on Friday withdrawing, with immediate effect, an Oct. 3 order that had allowed trade through the Taftan and Gabd-Rimdan crossings in Balochistan province. A Balochistan government official said the suspension was meant to address security concerns and curb smuggling. Tehran, for its part, has pointed to technical issues.
The Gabd-Rimdan crossing had become a major energy route, with more than 4,000 tons of LPG reportedly imported through it each day. The Quetta Chamber of Commerce and Industry said about 2,000 trucks have been affected.
The federal petroleum minister has said the price should be 425 rupees per kilogram. Distributors called on the government to enforce that rate.
Officials from both countries are continuing talks to resolve administrative issues. One official said the border was likely to reopen soon, but no date has been announced.
The closure comes after the two countries moved to expand trade. In August, they agreed to raise bilateral trade to $10 billion and keep border crossings open around the clock.
