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Amid rising inflation and gas shortage in the country, the demand to make PNG (Piped Natural Gas) and LPG tax free has intensified. Chamber of Trade and Industry (CTI) Chairman Brijesh Goyal has written a letter to Prime Minister Narendra Modi demanding abolition of tax on these two fuels.

Prices increasing due to tax

CTI says that at present, due to tax on LPG and PNG, there is additional burden on common people and businessmen. Currently, 5% GST is applicable on domestic LPG, while 18% GST is applicable on commercial LPG. There is no GST on PNG, but VAT ranges from 3% to 14.5% is imposed in different states. There is 5% VAT on PNG in Delhi.

Impact of West Asia crisis

According to CTI officials, due to the ongoing war and tension in West Asia, the supply of oil and gas has been affected globally. Its effect is also visible in India, where the shortage of LPG is increasing and people are rapidly shifting towards PNG.

Demand for PNG is increasing rapidly

A tremendous surge has been seen in the demand for PNG connections in Delhi. While in February 2026, about 686 new connections were being given daily, in March this number increased to about 2000 per day. In comparison, about 56 lakh domestic LPG connections already exist in the capital.

What is the demand from the government?

Brijesh Goyal in his letter has demanded from the government that GST on LPG should be reduced to zero and VAT on PNG should be completely abolished. He says that this will provide relief to both the general public and businessmen and will reduce the cost of energy.

What will be the benefit?

If the government accepts this demand, there will be a direct impact on gas prices. This will reduce the pressure on the domestic budget and the costs of industries will also reduce. At a time when the energy crisis is deepening globally, this step can provide great relief to the people.