Now Reading: India Weighs Gas Levies for Strategic Fuel Reserve
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India Weighs Gas Levies for Strategic Fuel Reserve
India Weighs Gas Levies for Strategic Fuel Reserve
The Story in Brief
India is considering charges on cooking gas and natural gas to fund a planned $42 billion strategic fuel reserve, according to two unnamed sources cited by Reuters and reported by The Hindu. The proposed reserve would cover about two months of crude oil and liquefied natural gas demand, and six weeks of liquefied petroleum gas consumption. The plan follows supply disruptions linked to the Iran war.
A proposed LPG levy of ₹1.29 per kilogram could raise $460 million annually and add about ₹18 to a domestic cylinder. A natural gas levy of ₹1.43 per standard cubic metre could raise around $1 billion each year. Collection details are unclear, and the concerned ministries did not respond to requests for comment.
The Indian Opinion
A larger fuel reserve could improve India’s protection against future supply disruptions. However, the proposal remains unconfirmed and is based on unnamed sources. The eventual cost to households and industry will depend on whether the levies are approved and how they are collected. Presenting the plan as final would be premature, while focusing only on the reported cylinder increase may overlook the wider annual burden.
Source: thehindu.com
This story was synthesised by AI from the source linked above.
