India has been experiencing gas shortages and price fluctuations for the past few months. It seems this period is far from over, as reports suggest the government is considering another increase in LPG and CNG prices. This move is aimed at increasing the country’s gas reserves.

Strategic Fuel Reserve Scheme

The Indian government is planning to create a Strategic Fuel Reserve to enhance the country’s energy security. The project is estimated to cost approximately $42 billion (approximately ₹3.7 lakh crore). However, the plan is yet to receive approval from the Prime Minister’s Cabinet. If implemented, a new levy could be imposed on customers using LPG (cooking gas) and natural gas (PNG). For the first time, the government is preparing to create a strategic reserve of LPG and LNG in addition to crude oil.

How ​​much will gas prices rise?

Under this proposal, the government could levy a fee of ₹1.29 per kilogram on LPG. This would increase the price of a standard 14.2-kilogram domestic gas cylinder by approximately ₹18. Meanwhile, a fee of ₹1.43 per standard cubic meter could be imposed on natural gas (PNG). The government estimates this could generate approximately $1.5 billion annually, which would be used to build gas storage infrastructure.

Why is this scheme being launched?

The primary reason for this initiative is recent circumstances. The crisis in the Middle East has disrupted fuel supplies over the past few months. India imports a significant portion of its oil and gas needs, so international crises directly impact the country. The government’s goal is to ensure the country has adequate fuel reserves to address future situations such as war, supply disruptions, or sudden increases in global prices.

PC:Samachar Jagat