The government continues to collect over 50 percent tax on domestic liquefied petroleum gas (LPG) cylinders, resulting in consumers paying more than Rs71 per kilogram in taxes.

According to official details, the price of a domestic LPG cylinder has been fixed at Rs2,466, while the actual production cost of an 11.8-kg cylinder is only Rs1,621.82. The government collects Rs844 per cylinder in taxes, which includes a petroleum levy of Rs55 and general sales tax (GST) of Rs301.84.

Additionally, consumers pay Rs413 in marketing, distribution, and dealer margins. On top of this, an extra 18 percent GST is applied on dealer margin, marketing, and distribution charges, amounting to Rs74.34.

The Oil & Gas Regulatory Authority (OGRA) has issued strict instructions to LPG companies to implement officially notified prices. Despite these measures, the actual market price of a domestic LPG cylinder in the twin cities has surged to between Rs3,700 and Rs3,800, placing additional financial pressure on consumers.

The continued high taxation on domestic LPG cylinders has raised concerns about affordability, prompting calls for policy review and better regulation to protect household consumers.