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India may charge gas users to fund planned $42 billion fuel reserves, sources say
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The Hindu - Home
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.
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.
For natural gas, the ministry has proposed a levy of ₹1.43 per standard cubic metre, generating about $1 billion annually at current consumption levels, the sources said.
The proceeds would primarily fund natural and cooking gas storage infrastructure, while crude reserves and strategic fuel inventories would continue to be financed by the federal government, the sources said.
The Ministry of Petroleum and Ministry of Finance did not respond to requests for comment sent by Reuters on Tuesday (August 4, 2026).