LPG prices surge in Pakistan, rickshaw drivers cut back on meals

LPG prices in Pakistan have climbed sharply since October 17, when two border crossings with Iran closed and halted imports, according to traders. The fuel is widely used in homes and by thousands of drivers, and the increase is hurting those who depend on it for work.

Before the closures, Pakistan imported about 7,000 metric tonnes of LPG a day from Iran, according to the Pakistan LPG Association. Traders said the price of a 12-kg cylinder jumped 56% within days of the closure to Rs7,000, or about Rs583 per kg in the open market.

Majeed Ghauri, chairman of the Awami Rickshaw Union, said about 70% of the union's 43,000 auto-rickshaws and nearly 8,000 Qingqis run on LPG. He called it "the fuel of the poor".

Rashid Ali, 33, has driven a three-wheeled rickshaw in Lahore for 13 years. His day starts at 6am and sometimes ends around midnight. He used to earn $6.50 a day but now earns under $3, and his family eats only twice a day.

Ali pays Rs600 a day to rent his rickshaw and fills up with gas four or five times a day, at Rs300 to 400 each time. He also pays Rs11,000 a month for his home and supports two young children. "Previously, when LPG was cheap, we could earn a decent income," he said.

Passengers are also offering lower fares than drivers want. Ali said: "For a trip that should cost Rs200 or 250, they might only offer Rs80, 100, or 150."

The reasons for the border closure are disputed. The Balochistan government cited security and smuggling. Iran's foreign ministry said technical issues were to blame. Iran's ambassador said Iran imposed no restrictions, including on LPG exports, and blamed changes in Pakistan's import paperwork.

The price rise comes amid wider cost pressure. Inflation reached 9.6% in October, and the central bank last week raised interest rates to 12%, citing energy and wheat prices. Petrol hit a record Rs458 per litre on April 3 and remains about 40% above its pre-war price.