# India Weighs Gas Levies and Approves Compressed Biogas Scheme

2026-08-06T11:50:27+00:00 | Business & Economy | Indian Opinion Desk

Corroboration: 2 independent outlets

India is considering levies on cooking gas and natural gas to fund a proposed $42 billion strategic fuel reserve, The Hindu reported, citing two unnamed sources. The plan could cover about two months of crude and LNG demand and six weeks of LPG use. A proposed LPG charge of ₹1.29 per kilogram may add about ₹18 to a domestic cylinder, while a natural gas levy could raise about $1 billion annually. No final decision or collection method has been announced. Separately, the Union Cabinet approved the ₹23,731 crore GOBARdhan scheme, according to The Times of India. It aims to expand compressed biogas production from farm, cattle and municipal waste, with mandatory blending targets reaching 5% from fiscal 2029. The programme includes price support, capital assistance and pipeline funding.

## Coverage

- thehindu.com <https://www.thehindu.com/business/india-may-charge-gas-users-to-fund-planned-42-billion-fuel-reserves-sources-say/article71310774.ece>
- timesofindia.indiatimes.com <https://timesofindia.indiatimes.com/business/india-business/india-eyes-lng-import-alternatives-cabinet-approves-rs-23731-cr-gobardhan-scheme-for-compressed-bio-gas/articleshow/132999211.cms>

Tags: energy security, fuel reserves, LPG, natural gas
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