LPG Prices In Pakistan Surge from Rs 3,150 – Rs 3968 Range To Rs 3,900 – Rs 5,100 Range For 11.67 KG Cylinder As The Month Of March Nears Its End
According to Startup Pakistan, LPG prices in Pakistan have surged from Rs 3,150 – Rs 3968 range To Rs 3,900 – Rs 5,100 range at the closure of the current month of March.
The sharp increase has put ordinary citizens under increased pressure, reducing their affordability as they rely on LPG for cooking and heating in homes.
The sharp increase in LPG prices is in response to the ongoing Middle Eastern Conflict which has disrupted supply chains and has caused fuel shortages. Due to artificial scarcity, prices have gone up tremendously.
It is worth noting that naturally when suppliers are limited, they have a higher bargaining power as compared to consumers. Thus, according to Economics, prices rise naturally as consumers are forced into meeting their demands.
In Pakistan, the relatively low response to sharp price surge due to the necessity of LPG for cooking and heating indicates that demand is relatively inelastic. The same is the case with other forms of fuel and the same inelasticity is reflected with petrol demands as well.
At the same time, Pakistan is leading the mediating role in the Middle Eastern conflict in hopes for successful de-escalation and return to normalcy.
