India may levy LPG and natural-gas users to fund $42B strategic fuel reserve

A proposal under inter-ministerial discussion could add ₹1.29 per kg to LPG, raising a standard domestic cylinder’s price by about ₹18, or roughly 2%. Cabinet approval is still pending.

— Filed Wed, 5 Aug, 2026, 15:35 IST · Source Business Today · Latest · Updated

India is considering levies on LPG and natural-gas users to fund a $42 billion strategic fuel reserve programme. The proposal could raise household cooking-gas bills by about ₹18 per cylinder, or roughly 2%, if approved.

Why this matters

The proposal follows India’s recent consideration of LPG and gas levies for fuel reserves, alongside plans to shield fuel consumers as Brent fell below $80 and ease retail compliance rules.

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