Gas prices are likely to increase after the government placed a ban on the import of Iranian LPG.
The prices of liquefied gas are already on an upward trend, they would be increasing further after this ban.
After the US embassy asked Pakistan to assure the compliance with the US sanctions against Tehran, the import of Iranian Liquefied Petroleum Gas—LPG was banned, referring it an issue of joint interest of both the governments.
The LPG marketing firms have already surged the prices of LPG unilaterally in the local market on the excuse of surge in the Saudi Aramco LPG price.
In local market the price of LPG surged by Rs.140 per cylinder and is to surge further after the ban on the Iranian LPG, as informed by the LPG Distributors Association Chairman—Irfan Khokhar.
The Oil and Gas Regulatory Authority—OGRA via a letter, forwarded the US embassy note to all the marketing firms and the LPG terminals, asking them to abide with the US sanctions against Iran and be cautious in the import of gas of Iranian origin.
The price of Saudi Aramco surged by $75/metric ton, from $355/metric ton to $430/metric ton.
This surge led to the up in prices in the local market by Rs.12 per kg for the domestic consumers which has surged the price of the domestic cylinder of 11.8 kg by Rs.140. The new price of the LPG cylinder for the domestic consumers is Rs.5,675.
Normally, OGRA informs the LPG prices on the first day of every month, but the LPG marketing firms have surged the prices in the local market before the notification of the regulators.
According to the Chairman of LPG Distributors Association the closure of the Taftan border, could lead to abnormal rises in LPG prices in the months to come. He informed that a major chunk of the LPG import was coming from Iraq and Iran via the Iranian border.
This year only the import of LPG from Iran was nearly 15,000 MT or nearly 500 MT on a per day basis.
The import through ships on Karachi port was minimal in the present months as it costs 35percent more than the LPG imported from Iran.
The government needs to take measures for minimizing the impact of the ban on the Iranian LPG on the consumers as it is going to take the prices of the item high.