Balochistan Terrorism: OGRA Warns of Potential LPG Shortage and Price Increases
QUETTA: The deteriorating security environment in Balochistan has given rise to serious apprehensions of possible shortages of Liquefied Petroleum Gas (LPG) and subsequent hike in prices throughout the country.
Recent incidents of terrorism in Balochistan, including attacks on oil and LPG tankers, have left most people living in the region in a confused state and put continuous supply lines at risk, increasing the cost of oil and LPG, according to documents obtained from the Oil and Gas Regulatory Authority (OGRA).
Some of the most critical transportation corridors in the country are under threat.
There is an urgent need to enhance the security arrangements along the important provincial transit roads especially Quetta-Nushki-Dalbandin-Taftan route for smooth transportation of LPG from border areas, OGRA documents say. Large importers and transporters have noted they have been reluctant to continue trading because of high losses due to specific-vehicle attacks.
The regulatory body highlighted that in the absence of timely and adequate action, supplies of LPG for the country could be severely affected in the future.
Heavy Reliance on Imports and Border Transit
LPG is also a main source of fuel for cooking in majority of Pakistani families and about 30% of the population has access to natural gas pipelines; the rest of the population has to use other fuels for cooking. Domestic LPG market is highly dependent upon imports, about 2 million tonnes are required in a year, and almost 70% of them are imported and 30% are produced in Pakistan.
Pakistan faces security issues as most of imported LPG is transiting through Pak-Iran border route via Balochistan which directly affects national availability, increase LPG dealership cost and consequently LPG retail prices in Pakistan.
Industry context and risk reduction measures.
OGRA has pointed out the need for coordination between the agencies in providing unhindered supply of fuel, and has urged them to take a firm action against those who are attacking the strategic supply lines to stabilise the market.
Earlier, the customs department has presented a parliamentary committee that dozens of petroleum and LPG tankers were attacked in Balochistan, resulting in financial losses worth billions of rupees. Authorities have adopted armed security escort convoys to ensure the safety of transit operations but security officials say that the situation is ongoing and it demands long-term, permanent security measures.