7 Apr 2026, Tue

LPG Cylinder Crisis Iran War: ‘Make gas GST free’, CTI’s letter to PM, raised voice for removal of VAT on LPG and PNG

LPG Cylinder Crisis Iran War: The impact of the ongoing war and increasing tension in Western Asia has now reached the kitchens of the common people of India. The shortage of LPG is increasing across the country and especially in Delhi, while the demand for PNG is increasing rapidly. However, the taxes imposed on both these fuels are putting additional burden on the pockets of the general public and traders.

Brijesh Goyal, Chairman of the Chamber of Trade and Industry, the top organization of businessmen of Delhi and the country, has written a letter to Prime Minister Narendra Modi regarding this serious issue. In the letter, he has raised the demand to make LPG and PNG completely tax free, so that the common people can get relief.

Different tax burden on LPG

According to the organization, currently 5 percent GST is levied on residential LPG in India, while this tax on commercial cylinders reaches 18 percent. In such a situation, it is having a direct impact on business activities.

PNG is also not untouched by tax

Although PNG does not currently come under the purview of GST, VAT ranging from 3 percent to 14.5 percent is levied on it in different states. 5 percent VAT is applicable on PNG in Delhi, which increases its cost.

Brijesh Goyal says that the Central Government should reduce GST on LPG to zero and VAT on PNG should also be completely abolished. He believes that this will provide great relief to both consumers and traders across the country.

Domestic impact of global crisis

According to CTI Senior Vice President Deepak Garg and Vice President Rahul Gandhi, the increasing conflict in West Asia has created a global oil and gas crisis. Its effect is clearly visible in India, where there is a shortage of LPG and a rise in the demand for PNG.

Sharp jump in PNG connections in Delhi

General Secretaries Gurmeet Arora and Ramesh Ahuja said that the number of people taking PNG connections in Delhi has increased rapidly. While in February 2026, an average of 686 connections were being given daily, in March this figure has reached around 2000.

Despite this, there are about 56 lakh domestic LPG connections in Delhi. In such a situation, both the availability and price of gas remain a matter of great concern for the common people.

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