India Prepares to Charge Gas Consumers for Strategic Fuel Reserve

India is considering imposing new charges on cooking and natural gas consumers to fund a planned $42 billion strategic fuel reserve. The proposal, which has yet to be approved by the Prime Minister's Cabinet, would extend India's strategic reserves beyond crude oil for the first time.

The plan aims to create stockpiles that are designed to cover about two months of crude and liquefied natural gas demand, and around six weeks of liquefied petroleum gas, or cooking gas consumption. The decade-long plan comes amid the recent supply disruptions caused by the Middle East crisis.

India relies heavily on foreign fuel, making it vulnerable to supply chain disruptions, particularly through the Strait of Hormuz. To finance the $1.5 billion needed for cooking and natural gas storage infrastructure, authorities plan to impose levies on users.