Pakistan's suspension of commercial traffic at two crossings with Iran has interrupted a key LPG supply route, while traders report rising cylinder prices as winter demand approaches.
Commercial traffic at the Gabd-Rimdan and Taftan crossings stopped on Oct. 17, Reuters reported. Dawn said it reviewed a Commerce Ministry memorandum dated Oct. 16 that withdrew an earlier trade order with immediate effect. Former Gwadar Chamber of Commerce and Industry President Shamsul Haq told Reuters that imports through Gabd-Rimdan had stopped and hundreds of trucks, including tankers, were waiting on both sides of the border.
Reuters said Gabd-Rimdan resumed handling Pakistani perishable-goods exports on Oct. 21. Its report did not say LPG imports had restarted. Iran's state news agency IRNA said officials from both countries were discussing steps to restore regular border operations, but gave no date for LPG imports to resume.
Traders told Reuters on Oct. 23 that a 12-kilogram cylinder was selling for 7,000 Pakistani rupees; they said it had cost 4,500 just days before. Irfan Khokhar, chairman of the Pakistan LPG Association, gave Reuters estimates of 7,000 rupees for a 12-kilogram cylinder in Balochistan, 7,500 in Lahore and 8,200 in Skardu. Dawn's Oct. 21 report cited different market rates: 6,000 rupees for a domestic cylinder in Punjab and Khyber Pakhtunkhwa, and 7,200 in hilly areas. The reports do not establish that the prices refer to the same dates, locations or cylinder sizes.
The Oil and Gas Regulatory Authority (OGRA) set October's official rate at 279 rupees per kilogram, or 3,350 rupees for a domestic cylinder, Dawn reported. Dawn also said higher prices add to the burden on households that rely on LPG for cooking and heating. Khokhar told Reuters that the price pressure was being felt in other goods as well.
Winter demand may add to the strain. Dawn estimated ordinary daily LPG use at 4,000 to 4,500 metric tons and peak winter use at 6,000 to 7,000 metric tons. Petroleum Minister Ali Pervaiz Malik separately put daily consumption at 6,500 to 7,000 metric tons, The News reported; the estimates have not been reconciled.
The route has faced delays before. Dawn reported that LPG trucks waited 10 to 15 days at Gabd-Rimdan for customs clearance in June.
Officials have offered different explanations for the current suspension. Balochistan adviser Shahid Rind cited security concerns, anti-smuggling efforts and border management, Dawn reported. Iran Foreign Ministry spokesperson Esmaeil Baqaei told IRNA that technical issues and precautionary measures prompted the suspension.
