India Considers Levies on Cooking Gas and Natural Gas Consumers
India's government is considering levies on cooking gas and natural gas consumers to fund its planned $42 billion strategic fuel reserve, according to Reuters. The reserve would cover two months of crude oil and liquefied natural gas demand, and six weeks of liquefied petroleum gas consumption. Under the plan, storage infrastructure for cooking and natural gas would be financed through levies on consumers, potentially raising about $1.5 billion annually.
The Ministry of Petroleum and Natural Gas is considering a levy of ₹1.29 per kg of LPG, which could generate about $460 million annually at current consumption levels. It would add about ₹18 to the cost of a standard domestic cooking gas cylinder. For natural gas, the ministry has proposed a levy of ₹1.43 per standard cubic metre, which could raise about $1 billion annually.
The proceeds would mainly finance natural gas and cooking gas storage infrastructure, while crude oil reserves and strategic fuel inventories would continue to be funded by the Government of India. The plan was developed after supply disruptions linked to the Middle East crisis pushed up import costs and highlighted India's dependence on overseas fuel supplies.