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The illicit black market for liquefied petroleum gas (LPG) has reached alarming levels in Pakistan, as price manipulators exploit political and economic instability, rendering the government powerless in controlling the soaring prices.
This dire scenario has given rise to a gas mafia that capitalizes on the price surge, engaging in rampant black-market activities across various regions of the country. In the absence of stringent regulations, importers and quota holders have colluded to raise distribution prices by more than Rs40 per kilogram above the official rate, with further price hikes anticipated as Ramadan approaches.
Ogra set consumer prices for LPG at Rs257.59 per kilogram for March, translating to Rs3,040 for an 11.8kg domestic cylinder. However, contrary to official rates, the average market price of LPG has surged to approximately Rs310 per kg nationwide, reaching as high as Rs360 per kg in mountainous regions such as Murree, Galiyat, parts of Khyber Pakhtunkhwa, and even higher in Gilgit-Baltistan. Domestic cylinder prices now fluctuate between Rs3,700 and Rs4,000 across various markets.
Industry insiders attribute these steep price increases to ongoing political instability. Irfan Khokhar, chairman of the LPG Industries Association Pakistan, condemned importers for exploiting regulatory loopholes to arbitrarily hike prices.
Despite global declines in LPG prices, local prices have surged due to the actions of the LPG mafia, adversely affecting the affordability and accessibility of this essential fuel for ordinary citizens. Public frustration has mounted, prompting appeals to the government to take decisive action against these exploitative practices to safeguard consumers and uphold fair market conditions. The actions of the LPG mafia not only impact the cost of living but also impede the country’s efforts to provide clean and affordable energy to its population.
