ISLAMABAD: A serious shortfall, amid negligible supplies from Iran, has driven a re cord surge in liquefied petroleum gas (LPG) prices in the country`s open markets, and the situation could worsen as winter approaches.

LPG prices have surged to record levels in colder parts of the country, with prices reaching up to Rs600 per kg in hilly areas and Rs500 per kg in Punjab and Khyber Pakhtunkhwa.

Daily LPG consumption is around 4,000-4,500 tonnes, but it rises to 6,000-7,000 tonnes per day during peak winter.

Incidentally, the official rate fixed by the Oil and Gas Regulatory Authority (Ogra) for October is Rs279 per kg, and the price of a domestic cylinder is set at Rs3,350.

Whereas, the price of a domestic LPG cylinder has reached Rs7,200 in hilly areas and Rs6,000 in Punjab and Khyber Pakhtunkhwa.

Demand surges not only in remote areas for heating and cooking but also in settled areas of Sui Northern Gas Pipelines Ltd (SNGPL) and in some parts of Sui Southern Gas Ltd, mainly due to gas load-shedding in the winter months.Pakistan produces between 2,000 and 2,500 tonnes of LPG daily, and an equal amount is both imported and smuggled from Iran. The recent surge in open-market prices is due to the sudden closure of all trading points with Iran.

LPG Distributors Association Chairman Irfan Khokhar warned that prices could rise further in the coming days, adding to the financial burden on households that depend on LPG for cooking and heating.

He accused Ogra of remaining a silent spectator to what he described as billions of rupees in overcharging, despite the significant gap between the regulated and prevailing market prices.

`The entire situation stems from the regulator`s mismanagement and lack of oversight,` Mr Khokhar said. `While immediate LPG imports are needed to improve supply, Ogra must amend the required notifications and determine the basket price for both imported and locally produced LPG.

He said the price of local LPG was Rs279 per kg, while the average market price was around Rs450 per kg across the country. `The sellers were fleecing consumers with huge margins even on local LPG.

He added that Ogra should address the wide gap between official rates and market prices, and that the government should devise a mechanism similar to petrol and diesel, where locally produced and imported prices are balanced, so the price is determined by mixing local and imported LPG.