The association has sent a letter to Prime Minister Shehbaz Sharif, urging him to reconsider the tax increase.
LAHORE: The cost of Liquefied Petroleum Gas (LPG) is poised to increase significantly in Pakistan following a government decision to raise import duty on the fuel. This move has drawn criticism from the LPG Distributor Association, who warn of a potential strike and further economic hardship.
The new budget proposal hikes the tax on LPG imports from 8% to 18%, translating to a projected increase of Rs. 14 per kilogram. This translates to a Rs. 164 rise in the price of a standard domestic LPG cylinder.
The LPG Distributor Association Chairman, Irfan Khokhar, has condemned the decision, calling it “unjust” to the Pakistani people. He fears that the price hike will burden both household and commercial consumers, particularly impacting small food businesses like dhabas and tandoors, which are likely to face closures due to rising fuel costs.
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Khokhar further highlighted the dependence on imported LPG, with 60-70% of domestic consumption relying on these imports. He argues that the tax increase harms both importers and consumers, potentially jeopardizing the operations of the 300 LPG marketing companies that rely on imported supplies.
The association has sent a letter to Prime Minister Shehbaz Sharif, urging him to reconsider the tax increase. If their plea falls on deaf ears, Khokhar warns of a potential strike by LPG distributors before the upcoming Eid al-Adha holiday. This could further disrupt the supply chain and exacerbate the economic situation.
