Pakistan’s LPG Prices Skyrocket, Threatening Rickshaw Drivers’ Income

LAHORE, Nov 3 (Reuters) – For 13 years, Rashid Ali has been driving a three‑wheeled motorised rickshaw around Lahore in eastern Pakistan.

His workday begins at 6 a.m. and often runs until midnight. Once he earned about $6.50 a day, enough to cover his family’s basic needs. Now, soaring liquefied petroleum gas (LPG) prices have cut his earnings to less than half that amount.

Ali, 33, is one of thousands of Pakistani drivers who rely on LPG, a fuel sold in cylinders and commonly used for cooking and heating.

Majeed Ghauri, chairman of the Awami Rickshaw Union, calls LPG “the fuel of the poor.” He estimates that roughly 70 % of the union’s 43,000 auto‑rickshaws and nearly 8,000 Qingqis—motorcycle‑based three‑wheelers that ply fixed routes—run on LPG.

LPG prices have surged since 17 October, when two Iranian border crossings were closed, halting imports, according to traders. The disruption marks the latest energy shock since the US‑Iran war began in February.

Now Ali’s daily income barely reaches $3, forcing his family to reduce meals to twice a day.

“When LPG was cheap, we could make a decent living,” Ali said. “Now it’s impossible to survive on seven or eight hundred rupees, isn’t it?”

Before the border closures, Pakistan imported roughly 7,000 metric tons of LPG daily from Iran, the Pakistan LPG Association said.

Traders reported that the price of a 12‑kg cylinder jumped 56 % within days of the closure, reaching 7,000 Pakistani rupees—about 583 rupees per kilogram on the open market.

The government of Balochistan, the southern province bordering Iran, cited security concerns and smuggling as reasons for the decision. Iran’s foreign ministry attributed the halt to technical issues, while its ambassador later claimed Iran had imposed no export restrictions and blamed changes in Pakistan’s import paperwork.

WALKING AWAY

Ali pays 600 rupees per day to rent his rickshaw and refuels four to five times daily, each fill costing 300‑400 rupees.

In addition to his daily expenses, he spends 11,000 rupees a month on housing and supports two young children.

Compounding his difficulties, passengers are unwilling to pay higher fares.

“A trip that should cost 200‑250 rupees might only bring 80, 100, or 150 rupees,” Ali said.

Passenger Mohammad Ramzan recounted an encounter where a driver asked for 500 rupees for a city ride, but Ramzan offered half that amount. When the driver declined, Ramzan walked away.

Pakistan’s inflation reached 9.6 % in October, prompting the central bank to raise interest rates to 12 % last week, citing energy and wheat prices. Petrol prices hit a record 458 rupees per litre on 3 April and remain about 40 % above pre‑war levels.

At midday, Ali returns home to find his two boys still needing lunch. He plans to resume driving into the night, hoping to earn enough to provide something for his children to eat later.

(Reporting by Ariba Shahid in Islamabad; Editing by Kate Mayberry)

Source link