The government continues to collect more than 50 percent tax on domestic liquefied petroleum gas (LPG) cylinders, resulting in consumers paying over Rs71 per kilogram in taxes.
According to details, the official price of a domestic LPG cylinder has been fixed at Rs2,466, while the actual cost of an 11.8-kg cylinder is only Rs1,621.82.
The government collects Rs844 per cylinder in the form of taxes.
Consumers are charged Rs71.52 per kilogram as tax. A petroleum levy of Rs55 has been imposed on domestic cylinders, while Rs301.84 is being charged as general sales tax (GST).
In addition, consumers are required to pay Rs413 under marketing, distribution, and dealer margins. An extra 18 percent GST is also applied separately on dealer margin, marketing, and distribution charges.
The government further collects Rs74.34 as GST on various margins.
Meanwhile, OGRA has issued strict instructions to LPG companies to ensure implementation of officially notified prices. Despite this, the price of a domestic LPG cylinder in the twin cities has surged to between Rs3,700 and Rs3,800.
