LPG Prices Surge Sharply Across Pakistan

The national average price of Liquefied Petroleum Gas has increased significantly, reaching approximately Rs3,900 to Rs5,135 per 11.67 kg cylinder, compared to the previous range of Rs3,150 to Rs3,968, as per the latest data released under the Sensitive Price Index for the week ending March 26. The most pronounced price increases have been observed across cities in Punjab.

The escalation in LPG prices has directly impacted transportation costs, particularly for rickshaws, buses, and minibuses operating on LPG, thereby increasing the financial burden on low- and middle-income commuters.

Industry stakeholders have attributed the price surge to ongoing geopolitical tensions, including the US-Israel conflict, which has driven global LPG prices upward. Additionally, supply disruptions from Iran—where daily shipments typically range between 10,000 to 12,000 tonnes—were temporarily affected due to Eid and Nauroz holidays.

According to Ali Haider of the Federation of Pakistan Chambers of Commerce and Industry, approximately three imported LPG consignments totaling 20,000 tonnes arrived during March. He further noted that the country currently maintains LPG reserves sufficient for approximately 13 to 14 days, with expectations that Iranian supply will resume post-holidays, contributing to market stabilisation.

Pakistan’s annual LPG demand is estimated at approximately 2 million tonnes, of which 1.2 million tonnes are met through imports, while 800,000 tonnes are produced domestically. Data from the Pakistan Bureau of Statistics indicates that the LPG import bill declined by 4%, amounting to $696 million during the first eight months of FY2025-26, compared to $725 million during the corresponding period of the previous fiscal year.