US-Iran War: The CTI has written a letter to PM Narendra Modi, demanding that LPG and PNG be made tax-free. The CTI asserts that if the government eliminates the GST on LPG, the direct benefit will accrue to the consumers.

LPG Cylinder Booking Tax: Rising tensions in the Middle East are having a severe impact on gas supplies. The direct effect of this is evident in LPG prices within India. Recently, the government hiked the prices of both domestic and commercial gas cylinders, causing significant difficulties for the public. Amidst this situation, however, the Chamber of Trade and Industry (CTI) has written to Prime Minister Narendra Modi, urging the government to exempt LPG and PNG from taxation.

The CTI argues that if the taxes currently levied on these fuels were removed, gas prices would decline, thereby providing substantial relief to the common people.

Currently, a 5 percent GST is imposed on domestic LPG cylinders, while a GST of up to 18 percent is collected on commercial cylinders. As for PNG, it currently falls outside the ambit of GST; instead, state governments levy VAT on it at varying rates, ranging from approximately 3 percent to 14.5 percent. For instance, in Delhi, a VAT of 5 percent is applicable to PNG.

LPG to Become Cheaper Upon Removal of GST

Domestic LPG Cylinder: Its current price in Delhi is ₹913. If the GST is removed, the price would drop to approximately ₹870—meaning it would become cheaper by about ₹43.

Commercial Cylinder: Its price in Delhi stands at ₹2,078. Following the removal of GST, the price would fall to approximately ₹1,760—resulting in a saving of about ₹318.

Removal of GST to Provide Relief to the Public

Brijesh Goyal, Chairman of the CTI, has appealed to the government to provide tax relief, taking into account the prevailing circumstances. He believes that such a measure would not only benefit ordinary consumers but also provide much-needed relief to small businesses. Meanwhile, other office-bearers of the organization state that the escalating crisis in West Asia has introduced volatility into the global oil and gas market, leading to a surge in demand within India as well.

A particularly rapid increase in the number of PNG connections has been observed in Delhi. While approximately 686 new connections were being added daily in February 2026, this figure rose to nearly 2,000 per day by March. Overall, if the government grants tax exemptions on LPG and PNG, it would provide significant relief to the general public.