Centre Mulls Additional Levy on LPG, PNG and CNG

The Central Government is considering imposing an additional levy on LPG, PNG, and CNG consumers to fund the expansion of India's strategic energy reserves, according to a Reuters report. If implemented, the proposal could increase the price of a 14.2-kg domestic LPG cylinder by around ₹18. The Petroleum Ministry has reportedly proposed a levy of ₹1.29 per kg on LPG and ₹1.43 per standard cubic metre of natural gas used for PNG and CNG. However, the proposal has not yet been approved by the Union Cabinet, and no official announcement has been made.

The proposed levy aims to raise nearly $42 billion (around ₹3.99 lakh crore) over the next decade to strengthen India's energy security by expanding storage infrastructure for LPG, LNG, natural gas, and crude oil. The move comes amid growing geopolitical uncertainties, including tensions in West Asia and concerns over energy supply routes such as the Strait of Hormuz. Officials believe the plan will help safeguard the country against future energy disruptions. However, consumers will have to wait for an official decision, as the proposal is still under inter-ministerial review.