Now Reading: India Weighs Gas Levies and Approves Compressed Biogas Scheme
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India Weighs Gas Levies and Approves Compressed Biogas Scheme
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…
The Story in Brief
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.
The Indian Opinion
The two measures show different approaches to energy security: building fuel reserves and expanding domestic alternatives to imported gas. However, the levy proposal remains unconfirmed and depends on unnamed sources, while the biogas scheme will require effective implementation, reliable waste collection and private investment. Claims that either measure will quickly remove India’s import vulnerability would be premature. Consumer costs and delivery timelines also remain important uncertainties.
Sources (2): thehindu.com, timesofindia.indiatimes.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
