geopolitics

Pakistan's LPG shortage deepens as Iran border crossings stay shut

Closure of two Iran crossings has halted Pakistan's LPG imports and pushed cylinder prices higher, traders told Reuters.

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what happened

Traders say the closure of two major Pakistan-Iran border crossings has stopped liquefied petroleum gas (LPG) imports into Pakistan, causing shortages and higher prices. The Gabd-Rimdan and Taftan crossings were shut on October 17, and the two countries gave different reasons: Balochistan's provincial government cited security and smuggling, while Iran's foreign ministry pointed to technical issues.

According to the Pakistan LPG Association, the country normally receives about 7,000 metric tons of LPG a day from Iran. The price of a 12 kg cylinder rose from 4,500 to 7,000 rupees within days. Gabd-Rimdan reopened on Wednesday for Pakistani perishable exports, but gas imports remain blocked.

why it matters

The volume is small for global markets, but such local energy disruptions can quickly feed into inflation in poorer economies. For traders the key signal is that talks on resuming trade are under way, though no reopening date has been set.

tags

instruments

LPGBrent

sources

  1. Pakistan LPG shortage worsens after border closure, traders say — Reuters, 23 October 2026 at 10:26 UTC

prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.

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