A rickshaw driver in Lahore who has worked the city’s streets for 13 years says a sharp rise in liquefied petroleum gas (LPG) prices has pushed his earnings below half of what he once made, forcing his family to cut back on meals. Rashid Ali, 33, is one of thousands of Pakistani drivers who run their vehicles on LPG, a gas usually sold in cylinders and mainly used for cooking and heating.
Majeed Ghauri, chairman of the Awami Rickshaw Union, calls LPG “the fuel of the poor”. He said about 70 per cent of the union’s 43,000 auto-rickshaws, and nearly 8,000 Qingqis, motorcycle-based three-wheelers that carry several passengers on set routes, run on the gas.
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How LPG price rises are hitting rickshaw drivers
Ali’s day usually starts at 6 am and can stretch until midnight. He was once able to make about $6.50 a day, enough for his family’s basic needs. Now he is lucky to earn $3 a day, and his household eats only twice daily.
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He pays Rs600 a day to rent his rickshaw and refuels four or five times a day, at 300 to 400 rupees each time. He also pays Rs11,000 a month for his home and supports two young children. “Previously, when LPG was cheap, we could earn a decent income,” Ali said.
Passengers, he added, are unwilling to pay higher fares. For a trip that should cost Rs200 or Rs250, he said, they might offer only Rs80, Rs100 or Rs150. Passenger Mohammad Ramzan said a driver had asked Rs500 for a city ride. He offered half that, and when the driver refused, he walked away.
Border closures and conflicting explanations for the shortage
LPG prices have risen since October 17, when two Iranian border crossings closed and halted imports, according to traders. The disruption is the latest energy shock since the US-Iran war began in February. The Pakistan LPG Association said the country had imported about 7,000 metric tons a day from Iran before the closures.
Traders said the price of a 12-kg cylinder jumped 56 per cent within days, to Rs7,000, or about Rs583 per kg in the open market. The government of Balochistan cited security and smuggling concerns for the decision. Iran’s foreign ministry blamed technical issues, while Iran’s ambassador later said Iran had imposed no restrictions, including on LPG exports, and pointed to changes in Pakistan’s import paperwork.
Inflation, interest rates and petrol prices add strain
Inflation in Pakistan reached 9.6 per cent in October. Last week the State Bank of Pakistan raised interest rates to 12 per cent, citing energy and wheat prices. Petrol hit a record 458 rupees a litre on April 3 and remains about 40 per cent above its pre-war price.
At midday Ali returns home, but his two sons still need lunch. He heads back out and works until late at night, hoping to earn enough to bring food for the children in the evening.
