LPG Price Surge Pushes Cafes to Coal

Rising liquefied petroleum gas rates are pushing tea cafes throughout Karachi to switch back to coal as businesses struggle with soaring fuel costs and fierce competition that leaves little room to raise rates.

Key points

• The consumer cost was fixed at Rs254, 315.35 per tonne, or Rs3, 000.92 per 11.8kg cylinder, compared with Rs241, 432.84 per tonne and Rs2, 848.91 per cylinder in July.
• The Oil and Gas Regulatory Authority rose LPG costs for August 2026 by Rs12.89 per kilogram, raising the cost of an 11.8kg domestic cylinder by Rs152.01 from August 1.
• While the same amount of coal costs around Rs5, 000, one owner in Gulshan-e-Iqbal remarked a 40-kilogram LPG cylinder now costs Rs14, 000 and lasts concerning five days.
• Add ProPakistani to Preferred Sources and see more of our stories in Google Search and Top Stories.
• LPG Rates Could Rise Again Under the Govt's New Plan.

Notably, a survey discovered that dozens of tea cafes in areas including Gulistan-e-Johar, North Karachi and Federal B Area have returned to coal as a cheaper alternative to increasingly expensive LPG.

Cafe owners remarked the continued rise in LPG costs has created it challenging to sustain their businesses.

While regional energy pressures have further strained the market, LPG rates in Pakistan have climbed sharply in recent months. Higher fuel and shipping costs have rose operating expenses for small businesses that depend heavily on LPG. Karachi Bans CNG, LPG Employ in Student Transport Vehicles.

Meanwhile, the Oil and Gas Regulatory Authority rose LPG costs for August 2026 by Rs12.89 per kilogram, raising the cost of an 11.8kg domestic cylinder by Rs152.01 from August 1.

Meanwhile, the consumer cost was fixed at Rs254, 315.35 per tonne, or Rs3, 000.92 per 11.8kg cylinder, compared with Rs241, 432.84 per tonne and Rs2, 848.91 per cylinder in July.

Cafe owners remarked customers have additionally responded positively to tea prepared on coal. Some remarked coal has once again become a necessity rather than just a preferred taste.

While the same amount of coal costs around Rs5, 000, one owner in Gulshan-e-Iqbal remarked a 40-kilogram LPG cylinder now costs Rs14, 000 and lasts concerning five days. He remarked this translates into monthly savings of concerning Rs54, 000.

Another owner in Buffer Zone remarked intense competition has produced it tough to rise tea rates, so reducing costs has become the only way to protect profits.

Meanwhile, an energy expert remarked fuel costs for tandoors, dhabas and small bakeries are rising faster than menu costs, leaving small food businesses with little room to absorb the shock. LPG Rates Could Rise Again Under the Govt's New Plan.

He remarked numerous operators are coping by accepting thinner margins, cutting portions and, in some cases, reducing staff.

Industry stakeholders additionally linked the shift to coal with the limited number of LPG filling stations in the city.

Meanwhile, the chairman of the LPG Distributors Association remarked the rate growth is not only due to regional tensions but additionally to black marketing, a lack of proper filling stations and a flawed pricing formula.

He pressed the administration to revise the LPG pricing mechanism, saying the fuel is being sold in the black market at different rates. Obtain the latest news and stories wherever you prefer.

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For now, LPG Price Surge Pushes Cafes to Coal remains the part of the story worth watching, and further updates are likely as more details are confirmed.