India may charge gas users to fund planned $42 billion fuel reserves, sources say
The Indian government is considering a new levy on cooking and natural gas consumers to fund a $42 billion strategic fuel reserve. This initiative aims to mitigate supply chain vulnerabilities exposed by recent geopolitical conflicts.
Why it matters
The proposal would directly increase costs for domestic gas users to build national energy security infrastructure.
India may impose a charge on cooking gas and natural gas on consumers to help fund a planned $42 billion strategic fuel reserve, according to two sources with direct knowledge of the matter, after disruptions from the Iran war exposed supply chain vulnerabilities.
The plan would extend India's strategic reserves beyond crude oil for the first time, with stockpiles 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 two sources said.
Under the plan, cooking and natural gas storage infrastructure would be financed through levies on users that could raise about $1.5 billion annually, the two sources said.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in