Pakistan LPG imports halt at Iran border drives shortages and price spike

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Pakistan LPG imports halt

Highlights

Closure of Gabd-Rimdan and Taftan crossings on October 17 halted Pakistan's daily import of 7,000 metric tons of LPG from Iran, causing supply disruption.
The price of a 12 kg LPG cylinder in Pakistan surged from 4,500 to 7,000 rupees within days, with prices reaching up to 8,200 rupees in Skardu.
Over 1,000 containers and hundreds of trucks remain stranded, and the Federation of Pakistan Chambers of Commerce and Industry notes $2.8 billion in annual Pakistan-Iran trade is at risk.

Border closure disrupts LPG supply chain

As reported by Pakistan Business Recorder, the Gabd-Rimdan and Taftan crossings between Pakistan and Iran were closed on October 17, stopping LPG imports that traders say are critical to Pakistan's domestic market. Pakistani and Iranian authorities have given different explanations for the shutdown, with the Balochistan government citing security concerns and anti-smuggling efforts, while Iran's foreign ministry points to technical issues.

Pakistan imports about 7,000 metric tons of LPG a day from Iran, according to the Pakistan LPG Association. More than 4,000 tons a day usually enters through Gabd-Rimdan alone, said Shamsul Haq, former president of the Gwadar Chamber of Commerce and Industry, who said the imports are now at a standstill.

Haq said more than 1,000 Pakistani containers carrying potatoes, bananas and rice for Iran are also stranded, although the Gabd-Rimdan crossing reopened on Wednesday for Pakistani exports of perishable goods. Hundreds of trucks, including LPG tankers, remain stuck on both sides of the border, while the Quetta Chamber of Commerce and Industry has advised members to stop placing new orders with Iran until further notice.

Truck drivers at the crossings say they have been waiting for days in difficult conditions with limited access to basic amenities. One driver, Abdul Ghani Baloch, said he has been waiting for more than a week for the border to reopen.

Price pressure spreads across Pakistan

Traders say the price of a 12 kg LPG cylinder has risen to 7,000 Pakistani rupees from 4,500 rupees within days, and warn it could climb further if the disruption continues. Pakistan LPG Association Chairman Irfan Khokhar said the fuel is already being sold at different prices across the country, including about 7,000 rupees in Balochistan, 7,500 rupees in Lahore and 8,200 rupees in Skardu.

Khokhar warned that shortages and price increases could worsen, adding that higher LPG costs are feeding into the prices of other goods. Lahore resident Farhat Abbas said he used to pay 250 rupees per kg for LPG before the border closure but now pays 500 to 600 rupees per kg.

The strain comes as consumers worry about supply and heating costs ahead of winter. Pakistan-Iran trade totaled about $2.8 billion in the 2023-24 fiscal year, including roughly $684 million of Pakistani exports, according to the Federation of Pakistan Chambers of Commerce and Industry, underlining the broader commercial impact of the border disruption.

Pakistan's army chief visits Tehran this week and discusses border issues with Iranian leaders, while Iran's foreign ministry says consultations on resuming trade are underway.

Our earlier report on the spike in crude oil shipping costs explained how conflict-related risks in key routes such as the Strait of Hormuz and the Red Sea are forcing vessels to reroute and pay higher insurance, sharply lifting freight rates. We noted that these transport cost shocks can filter through to pump prices and broader consumer inflation, especially in import-dependent markets.

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