India mulls gas levies to build $42 billion fuel stocks
India is thinking about adding small new taxes on cooking gas (LPG) and natural gas bills to help pay for a massive $42 billion fuel reserve plan.
The idea is to build up emergency stocks of LNG and LPG so the country isn't caught off guard by supply issues like those recently seen in the Middle East.
If this goes ahead, India could store enough fuel to cover two months of crude and LNG use, plus six weeks of LPG.
India proposes ₹1.29/kg and ₹1.43/m3 taxes
The proposed tax would be ₹1.29 per kilogram on LPG and ₹1.43 per cubic meter on natural gas, which could bump up household gas bills by about 2%.
The money raised (around $1.5 billion a year) would go toward building new storage tanks for LNG and LPG, while the government keeps funding crude oil reserves.
The plan still needs cabinet approval but aims to make sure India has backup fuel when it really counts.