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India may fund LNG and LPG emergency stocks with new gas levies
The plan discussed by Indian ministries would collect about $1.5 billion a year via charges on LPG and natural gas consumption, potentially lifting household gas bills by about 2%.
India is considering a new way to help finance a larger strategic fuel reserve program, including dedicated emergency stockpiles for liquefied natural gas and liquefied petroleum gas, according to reports cited by OilPrice.
Business Standard says the government is weighing levies on both LPG and natural gas consumption to raise about $1.5 billion annually to build storage infrastructure for LNG and LPG, with the strategic crude oil reserve system expected to remain federally funded.
The proposal under discussion includes a levy of 1.29 rupees per kilogram of LPG, expected to generate about $460 million a year, and a levy of 1.43 rupees per standard cubic meter of natural gas, projected to raise about $1 billion annually at current consumption levels.
If adopted, the levies would increase household gas bills by about 2%, OilPrice notes, adding to the political sensitivity as the plan has not yet received cabinet approval and is still being reviewed across multiple ministries.
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