India weighs LPG and gas levies to fund $42bn strategic fuel-reserve plan

Proposed charges of Rs 1.29 per kg on LPG and Rs 1.43 per standard cubic metre of natural gas could lift household gas bills by about 2%, subject to cabinet approval.

— Filed Wed, 5 Aug, 2026, 14:59 IST · Source ET Small Business · Updated

India is considering levies on LPG and natural-gas users to fund a $42 billion strategic fuel-reserve programme. The proposed charges could raise household gas bills by about 2% while financing new LPG and LNG storage capacity.

Why this matters

The proposal follows India flagging measures to shield fuel consumers as Brent fell below $80, alongside recent moves to ease retail compliance breaches and extend electronics machinery tax exemptions.

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