Preparations Underway to Impose New Levy on LPG Cylinders; Costs Likely to Rise

Preparations are underway to impose a new levy on LPG cylinders, which could make domestic gas cylinders approximately ₹18 more expensive. Here are the details of the government's plan.

Drawing lessons from the crisis in West Asia, the government is planning to build reserves of LPG and natural gas within the country. A plan worth approximately $42 billion is being formulated for this purpose. Alongside this, the government is considering the option of imposing a nominal additional levy on domestic gas consumers.

According to sources, the Ministry of Petroleum has proposed an additional levy of ₹1.29 per kilogram on cooking gas (LPG) and ₹1.43 per standard cubic meter on natural gas (PNG). If this proposal is implemented, the price of a domestic LPG cylinder could rise by about ₹18. Meanwhile, domestic PNG bills are estimated to increase by approximately 2 percent. No final decision has been taken on this proposal yet.

Why does the government want to impose an additional levy on gas?