PLMA Raises Concerns Over LPG Tax Hikes

The Pakistan LPG Market Association (PLMA) has raised concerns over the recent increase in the Petroleum Development Levy (PDL) and the implementation of an 18 percent GST on imported LPG. PLMA Vice Chairman, Muhammad Ali Haider, has urged for an immediate review of these policy changes, highlighting the potential risks they pose to both the industry and consumers.

The newly announced tax adjustments for 2024-2025 indicate a significant rise in the PDL on locally produced Liquefied Petroleum Gas (LPG), jumping from Rs 4,669 per metric ton to a new minimum of Rs 30,000 per metric ton. Furthermore, the government has imposed an 18 percent GST on imported LPG, which constitutes 65 percent of the market's supply. These modifications are expected to push LPG prices up to around Rs 30 per kilogram, impacting numerous households and industrial users.

Impact on Consumers and Industry

The surge in taxes on domestically produced LPG and the introduction of GST on imported LPG are likely to result in a significant increase in the cost of LPG for consumers. Households relying on LPG for cooking and heating purposes may face financial strain due to higher prices. Industrial users, including businesses using LPG as a fuel source, are also expected to bear the brunt of these tax hikes, potentially leading to increased operational costs.

Call for Reassessment

PLMA's Vice Chairman, Muhammad Ali Haider, has emphasized the need for a prompt reassessment of the recent tax changes to mitigate adverse effects on the LPG industry and consumers. The association is advocating for a balanced approach that considers the interests of all stakeholders involved in the LPG market.

Conclusion

The current tax adjustments on LPG in Pakistan have sparked concerns within the industry and among consumers. As stakeholders await further developments, the PLMA continues to push for a reconsideration of these policies to ensure a sustainable and affordable LPG market for all.