The cost of Liquefied Petroleum Gas (LPG) is expected to surge in Pakistan following a government decision to raise import duties.
This move has drawn strong criticism from industry representatives who warn of increased burdens on consumers and potential business closures.
The new budget proposal hikes the tax on LPG imports from 8% to 18%, translating to a projected increase of Rs. 14 per kilogram of the fuel. This translates to a Rs. 164 rise in the price of a standard domestic LPG cylinder.
The LPG Distributor Association, led by Chairman Irfan Khokhar, has condemned the decision, calling it “unjust” to the Pakistani people. Khokhar expressed concerns that the price hike will disproportionately impact both households and commercial consumers.
“This will further burden the already struggling population grappling with inflation,” Khokhar stated. He warned that the increased costs could lead to the closure of small food stalls (“dhabas”) and tandoors across the country, potentially contributing to unemployment.
Khokhar emphasized the reliance on imported LPG, highlighting that 300 LPG marketing companies depend on it and 60-70% of domestic consumption comes from imports. He argued that the tax increase will hurt both importers and consumers. The association has sent a letter to Prime Minister Shehbaz Sharif, urging him to reconsider the tax hike. They have also threatened to go on strike before the upcoming Eid al-Adha holiday if their demands are not met.
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