Armenia faces LPG shortages amid global market strains

Liquefied petroleum gas (LPG) prices in Armenia remain elevated at 270-290 drams per liter, with many filling stations reporting shortages despite the reopening of the Upper Lars checkpoint for freight traffic, energy experts said on Tuesday.

Armen Manvelyan, an energy analyst and a member of the HayaKve initiative, told Panorama.am that the surge in prices reflects broader global market disruptions. “The international gas market is under severe strain due to geopolitical tensions, including the Iran-U.S. conflict, which has driven up prices worldwide,” he said.

Manvelyan noted that Russia, traditionally a major supplier, has reduced LPG exports to meet domestic demand. Armenia, a member of the Eurasian Economic Union (EAEU), benefits from quotas on oil and gasoline but not on LPG, leaving supplies vulnerable. Imports from Iran and Iraq, once a significant source, have also stalled.

“Economic factors are compounded by political ones,” Manvelyan said, pointing to strained relations between Yerevan and Moscow. “If relations were stable, Armenia could secure larger volumes of LPG.”

Despite Western sanctions, Russia continues to find buyers for its liquefied gas, particularly in Europe. “The EU has increased purchases of Russian LPG in recent months, even as pipeline gas faces restrictions,” Manvelyan explained. “Alternatives from the Gulf or the United States are either unavailable or prohibitively expensive.”

Armenia’s domestic market, comparatively small, has struggled to compete for supplies. The shortages have coincided with reports that Russia has partially restricted imports of Armenian mineral water, which Manvelyan interpreted as a sign of political friction.

“Armenia’s economy is heavily dependent on Russia, not only for imports but also for exports,” he said, noting that roughly 80% of Armenian agricultural products are sold in the Russian market. “If these channels close, the consequences will be severe.”

The Ministry of Economy said it was aware of the LPG shortage but stressed that retail prices were not under its direct control. Officials promised to share updates if new developments arise.