LPG Crisis Deepens as OGRA Delays Crackdown on Price Gouging

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LAHORE/PESHAWAR: Liquefied petroleum gas (LPG) prices have surged across Pakistan amid supply disruptions, with rates reaching Rs750 per kilogram in parts of Khyber Pakhtunkhwa (K-P) and cylinder prices exceeding Rs10,000, adding to the financial burden on households.

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The Oil and Gas Regulatory Authority (OGRA) has yet to launch a planned crackdown on companies and retailers accused of profiteering, amid concerns that enforcement measures could trigger strikes, disrupt supplies and worsen the ongoing energy crisis.

The crisis has intensified over the past five to six days following a decline in LPG supplies, which officials have linked to the closure of the Taftan border amid tensions between Iran and the United States.

Pakistan meets approximately 70 per cent of its LPG requirements through imports, while the remaining 30 per cent comes from domestic production, a senior OGRA official told The Express Tribune on condition of anonymity.

OGRA has set the official LPG price for the current month at Rs279.34 per kilogram. However, market rates in several areas have climbed to between Rs550 and Rs600 per kilogram. Prices in Peshawar have reached around Rs600, while consumers in northern areas are reportedly paying as much as Rs750 per kilogram.

The sharp increase has raised concerns over the effectiveness of price enforcement, with consumers facing rates significantly above the official benchmark. The OGRA official warned that further supply disruptions following enforcement action could push prices beyond Rs700 per kilogram in affected markets.

An OGRA spokesperson said the authority was working to address the situation, acknowledging that the closure of the Taftan border had created supply difficulties. The spokesperson expressed confidence that the crisis would be brought under control soon.

Lower-income households have been particularly affected, especially in K-P, where many residents are also experiencing shortages of natural gas. The combination of limited gas availability and soaring LPG prices has made it increasingly difficult for families to meet their basic cooking-fuel needs.

In rural areas and on the outskirts of Peshawar, residents have increasingly turned to firewood for cooking as LPG and natural gas become more difficult to obtain. This shift has also pushed up firewood prices, further straining household budgets.

Firewood, previously selling for Rs1,400 to Rs1,600 per maund, is now priced between Rs1,600 and Rs1,800, representing an increase of Rs200 to Rs300 per maund.

The worsening situation has highlighted the vulnerability of households to disruptions in fuel imports and the need for effective market monitoring to prevent excessive pricing while maintaining uninterrupted supplies.

Story by Talib Fareedi/Ahtesham Bashir

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