In a major development aimed at cushioning the impact of the West Asia conflict and rising inflation, a significant reduction in LPG prices is being proposed in India. The Chamber of Trade and Industry (CTI) has formally written to Prime Minister Narendra Modi, requesting the complete removal of GST on cooking gas to provide relief to households and businesses.

The Math of Price Reduction Currently, the government levies 5% GST on domestic LPG and 18% on commercial LPG. If the Centre accepts CTI’s proposal to scrap the 18% tax on commercial cylinders, the price could drop by at least ₹317 per unit. Similarly, removing the 5% tax on domestic gas would result in a direct saving of approximately ₹43 for every household.

Impact of Geopolitical Tensions The ongoing Iran-US-Israel conflict has disrupted gas tankers entering India via the Strait of Hormuz, leading to a temporary shortage and price hikes since March. CTI argues that eliminating the tax burden will prevent prices from spiraling out of reach. While piped gas (PNG) is already outside the GST ambit, state-imposed VAT keeps its cost high. The common man now looks toward the central government for a final decision on this crucial tax waiver.