LPG price surge halves Lahore rickshaw drivers' daily earnings

Liquefied petroleum gas has risen 56% in Pakistan since two Iranian border crossings closed on 17 October, halving the daily earnings of thousands of rickshaw drivers in Lahore, traders and a union representing the drivers said.

A 12-kg cylinder now sells for 7,000 rupees in the open market, about 583 rupees a kilogram, traders told Business Recorder. Pakistan was importing about 7,000 metric tons of LPG a day from Iran before the crossings shut, according to the Pakistan LPG Association.

Majeed Ghauri, chairman of the Awami Rickshaw Union, called LPG "the fuel of the poor." About 70% of the union's members' 43,000 auto-rickshaws and nearly 8,000 Qingqis, motorcycle-based three-wheelers that carry passengers on fixed routes, run on the gas, he said.

Rashid Ali, 33, has driven a three-wheeled rickshaw in Lahore for 13 years, starting at 6am and sometimes finishing at midnight. He said he used to clear about $6.50 a day, enough for his family's essentials. He now makes about $3 on a good day, and his household has cut back to two meals a day.

"It's just not possible to get by on seven or eight hundred rupees, is it?" he said.

Ali pays 600 rupees a day to rent his rickshaw and fills the tank four or five times a day at 300 to 400 rupees a time. His home costs 11,000 rupees a month and he has two young sons. Passengers, he said, refuse to pay higher fares.

Mohammad Ramzan, a passenger, said a driver asked 500 rupees for a trip across the city. He offered half. The driver turned it down and Ramzan walked, he said.

The Balochistan government, whose province borders Iran, cited security and smuggling for the crossings' closure. Iran's foreign ministry blamed technical issues. Iran's ambassador later said Tehran had imposed no restrictions, including on LPG exports, and blamed changes in Pakistan's import paperwork.

Traders described the closure as the latest energy shock since the US-Iran war began in February, Business Recorder reported.

Inflation in Pakistan was 9.6% in October. The central bank raised its policy rate to 12% last week, citing energy and wheat prices. Petrol reached a record 458 rupees a litre on 3 April and remains about 40% above its pre-war price.

Ali came home at midday. His sons still needed lunch. He said he would go out again until late at night, hoping to bring back food for them.