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LPG Gas New Tax : The world is currently facing an energy crisis due to the conflict in Iran. The recent situation has shown how vulnerable it can be due to disruptions in the supply chain caused by war. In this context, the Indian government is considering establishing a domestic strategic fuel stockpile worth $42 billion. But in the midst of all this, the government is preparing to take a big decision. This may affect the common man. 

To raise funds for this strategic fuel reserve, the government is likely to levy a levy on consumers of cooking gas (LPG Gas New Tax) and natural gas. This means that the government may impose a separate tax on cooking gas, be it LPG or any other type of gas.

Will everything be expensive then?

It is clear that if the government imposes any kind of tax on cooking gas, its prices will increase. This means that everything from LPG to PNG could become more expensive. However, the government has not yet given any official comment on this.
According to news agency Reuters, two sources with direct knowledge of the matter have said that the government may impose a cess on cooking gas to fund the Strategic Fuel Reserve.

Tax of ₹1.29 on LPG

India’s Ministry of Petroleum and Natural Gas is considering imposing a tax of ₹1.29 ($0.0136) per kilogram on LPG, sources said. Based on current usage, this would generate an estimated revenue of $460 million annually and increase the price of a domestic gas cylinder by about ₹18. The ministry has proposed a cess of ₹1.43 per standard cubic meter on natural gas, sources said, which could generate about $1 billion annually based on current usage levels.

The government will get huge revenue.

According to Reuters, two sources said that under the scheme, India’s strategic reserves will be expanded beyond crude oil for the first time. This will create enough reserves to meet about two months of demand for crude oil and LNG, as well as about six weeks of LPG or cooking gas consumption. The sources said that under the scheme, a tax on users will be levied on cooking and natural gas storage infrastructure, which could generate an estimated $1.5 billion or more than Rs 3.93 lakh crore annually.