As regional tensions escalate due to the ongoing Iran-Israel conflict, a severe LPG (liquefied petroleum gas) crisis may unfold across Pakistan if immediate steps are not taken to increase storage capacity.
In an urgent appeal to Prime Minister Shehbaz Sharif and Minister for Energy (Petroleum Division) Ali Pervaiz Malik, Chairman of the LPG Industries Association of Pakistan, Irfan Khokhar highlighted the deteriorating supply situation and stressed that the current local production of 60,000 to 70,000 metric tons per month is insufficient to meet the country’s daily demand of 6,000 metric tons.
Khokhar stated that the closure of borders has severely disrupted LPG imports, prompting fears of an unprecedented shortfall that could trigger record-breaking prices across the country.
The Chairman of the LPG Distributors Association of Pakistan also warned that if the government does not act swiftly to increase LPG imports and expand storage capacity, the country could plunge into a historic shortage.
“Due to the Iran-Israel war, borders have been sealed, cutting off LPG supplies from Iran,” Khokhar said, adding, “If immediate import arrangements are not made, the LPG shortfall will severely impact Pakistani consumers.”
He further cautioned that the crisis is already being exploited by profiteers, with household LPG cylinder prices projected to soar beyond PKR 6,000. Per-kilogram prices may hit PKR 450–500, while commercial cylinders could rise to PKR 20,000–23,000.
With a daily national demand of 6,000 metric tons, Pakistan’s local LPG production—roughly 60,000 to 70,000 metric tons per month—is insufficient to meet consumption needs. Storage infrastructure is also alarmingly limited; Port Qasim’s LPG terminals operated by SSGC and EVTL have a combined capacity of only 13,000 metric tons. In contrast,
Bangladesh has developed an LPG storage capacity of 300,000 metric tons.
Khokhar urged the federal government to urgently enhance national storage and immediately import LPG to stabilize the market. He also emphasized the need to bring OGDCL’s local LPG production under government control, alleging that the “LPG mafia” currently dominates distribution channels.
“We must follow PPL’s transparent bidding model and ensure fair distribution of LPG through PSO, SSGC, PARCO, and others,” he stated while talking to Profit. “Where has our locally produced gas gone—has it vanished into thin air?”
Khokhar advised all distributors and retailers nationwide to maintain full stocks in anticipation of further supply disruptions.
