'Fuel of the poor' LPG soars in Pakistan, forcing rickshaw drivers to cut meals

Liquefied petroleum gas, or LPG, is a fuel made mainly from gases such as propane and butane. It is stored as a liquid under pressure in cylinders, then burns as a gas. Its portability makes it useful where piped fuel is unavailable. The article describes it as “the fuel of the poor” because households and transport workers rely on it.

LPG burns to produce heat, so families use it for cooking and heating. A rickshaw can also be fitted with equipment that lets its engine burn LPG. Drivers then buy gas in cylinders or refuel from sellers. In Pakistan, about 70 per cent of the Awami Rickshaw Union’s vehicles use LPG.

That shared dependence makes price changes especially serious. When imports from Iran stopped, LPG became much more expensive. Drivers faced higher operating costs, while families faced costlier household fuel. The article does not compare LPG’s technical performance with other fuels, but it clearly shows its importance for daily travel and basic needs.

The price increase was sudden and large. Traders said a 12kg LPG cylinder rose 56 per cent within days of the border closures, reaching 7,000 Pakistani rupees, or about 583 rupees per kilogram on the open market. That directly raised the cost of transport and household energy.

Pakistan’s dependence appeared at both the supply and user ends. Before the closures, the country imported about 7,000 metric tons of LPG daily from Iran. On the transport side, about 70 per cent of the Awami Rickshaw Union’s 43,000 auto-rickshaws and nearly 8,000 Qingqis ran on LPG. These figures show that a disruption could affect a large market quickly.

The consequences reached drivers and passengers. Rashid Ali’s daily income fell from about US$6.50 to roughly US$3. He then reduced his family’s meals. The article does not state how much of Pakistan’s total LPG supply came from Iran, but it identifies Iranian imports as a major source.

LPG prices rose because border closures interrupted the flow of imported fuel. The two Iranian crossings closed on October 17, and traders said imports stopped. Before that, Pakistan brought in about 7,000 metric tons of LPG from Iran each day. Removing such a large supply source left less gas available in the market.

With supply restricted, buyers competed for what remained. Traders said the price of a 12kg cylinder rose 56 per cent within days, reaching 7,000 Pakistani rupees. The mechanism was direct: fewer imports meant tighter availability, while households and LPG-powered vehicles still needed fuel. Sellers therefore charged much more in the open market.

The reason for the closures was disputed. Balochistan’s government cited security and smuggling. Iran’s foreign ministry blamed technical issues, while Iran’s ambassador later said Iran imposed no restrictions and blamed changes in Pakistan’s import paperwork. Whatever the cause, the immediate result was disrupted supply and higher prices.

A sharp LPG increase squeezes a driver from both sides. Fuel is a direct operating expense, so every price rise leaves less money after each day’s work. If passengers will not accept higher fares, the driver must absorb the increase. The result is lower take-home income, even when working long hours.

Rashid Ali pays 600 rupees daily to rent his rickshaw. He refuels four or five times a day, paying 300 to 400 rupees each time. He also pays 11,000 rupees monthly for housing and supports two young children. When LPG became more expensive, his income fell from about US$6.50 per day to roughly US$3.

That reduction affected food immediately. Ali said his family had cut meals from three to two each day. At midday, his children still needed lunch, so he planned to keep driving until late at night. The article shows how fuel inflation can become a food problem when earnings cannot keep pace with costs.

Drivers cannot simply raise fares because passengers decide whether a ride is worth the price. When household budgets are under pressure, many passengers choose a cheaper ride, negotiate, or walk away. A higher fare may recover fuel costs per trip but reduce the number of trips a driver gets.

Ali said a trip that should cost 200 or 250 rupees might bring only 80, 100, or 150 rupees. Passenger Mohammad Ramzan described a city ride where the driver asked for 500 rupees. Ramzan offered half, and when the driver refused, he walked away. These examples show the bargaining pressure drivers face.

Inflation makes the conflict sharper. Pakistan’s inflation reached 9.6 per cent in October, while petrol remained about 40 per cent above its pre-war price. Drivers need more revenue, but passengers also face rising costs. Until incomes or fares adjust, drivers absorb the loss through longer hours, reduced spending, or both.

Possible alternatives include petrol, compressed natural gas, or electric power. Petrol is already used in vehicles and can avoid dependence on LPG imports, but its price may be high. The article reports that petrol reached a record 458 rupees a litre and remained about 40 per cent above its pre-war price. That would not guarantee cheaper journeys.

CNG could offer another gas-based option where filling stations and vehicle equipment exist. However, switching would require conversion costs and reliable access to CNG. Electric rickshaws could avoid liquid-fuel purchases, but they would require an electric vehicle, charging access, and money for the initial purchase or conversion. These practical details are not discussed in the article.

For drivers like Ali, the main trade-off is immediate affordability versus longer-term operating costs. A new vehicle or conversion may be impossible when daily income has already fallen. The article therefore supports caution: it identifies petrol’s high price but does not establish which alternative would be cheapest or available in Lahore.

Fuel prices reflect the balance between supply and demand. Supply is the amount available from domestic production and imports. Demand is how much households, drivers, and other buyers want. If supply falls while demand stays strong, sellers can charge more because buyers compete for limited fuel. Competition between sellers can restrain prices when supplies are plentiful.

Pakistan imported about 7,000 metric tons of LPG daily from Iran before the border closures. When two crossings closed, traders said imports halted. Yet families still needed LPG for cooking and heating, and many rickshaws still needed it to operate. That combination created scarcity. The price of a 12kg cylinder then rose 56 per cent to 7,000 Pakistani rupees.

Import dependence magnified the disruption. A supply problem at the border quickly reached the open market and then drivers’ household budgets. If imports resume, prices could ease, but the article does not say whether or when that will happen. It shows why concentrated supply routes can make fuel prices vulnerable.