KARACHI: Liquefied Petroleum Gas (LPG) prices in Karachi surged to a record Rs.500 per kilogram, leaving consumers and market observers alarmed as many report paying roughly Rs.200 more than the officially notified rate.
The LPG price surge comes a day after Prime Minister Shehbaz Sharif announced a temporary reduction in petrol prices of Rs.80 per liter for one month, and pledged that railway economy fares would not be increased while small farmers receive Rs.1,500 per acre. However, industry sources say the petrol cut does little to ease the LPG crisis because cylinder distribution relies on diesel-powered transport—whose prices remain at historic highs—so logistics and fuel-cost pressures continue to push up LPG retail rates despite the relief measure.
Consumers across the metropolis say retailers are charging Rs.200 above the official price for each kilo of LPG, a markup that has intensified household cost pressures already exacerbated by historic highs in petroleum product prices and the broader economic stress facing Pakistan amid the ongoing US‑Iran hostilities.
Abdul Hadi Khan, chairman of LPG distributors, attributed the spike to constrained supply and rising procurement costs. “Supply is low and distributors are receiving more expensive product,” he said, adding that regulatory oversight has been inadequate. He accused the Oil and Gas Regulatory Authority (Ogra) of failing to curb unauthorized markups by some importers and traders, which he said is fueling the gap between official and market prices.
Market participants warn that persistent supply constraints, coupled with global energy market volatility linked to the US‑Iran conflict, could keep domestic LPG and petroleum prices elevated. Consumers and small businesses dependent on LPG for cooking and operations face immediate hardship, and calls are growing for stronger regulatory enforcement, targeted subsidies, or emergency import facilitation to stabilize supply and prices.
Officials at Ogra and the federal energy ministry were not immediately available for comment.
