LPG prices surge in India and Pakistan amid supply disruptions

Liquefied petroleum gas (LPG) prices are facing significant upward pressure in South Asia due to geopolitical tensions and supply shortages. In India, the world’s largest LPG importer, costs rose by 29% more than pre-war market expectations following strikes in the Strait of Hormuz. According to a CREA report, Saudi Aramco’s monthly contract prices drove this increase, with propane and butane prices seeing sharp rises. To mitigate the impact, India increased its share of LPG imports from the US, which rose from 8% in February to 32% in April.

Simultaneously, residents in Lahore, Pakistan, are facing a localized crisis as LPG retail prices have nearly doubled the government-fixed rate. Retailers are charging between Rs400 and Rs430 per kilogram, significantly higher than the official rate of Rs241 per kilogram. This price surge is driven by a shortage of Sui gas, which has left many households unable to rely on traditional gas supplies for cooking and heating, forcing them into the expensive LPG market.