LPG: Big shock is waiting for common people. The costs of LPG and PNG cylinders are expected to rise soon due to potential tax implementation by the central government under Narendra Modi. Reports suggest a strategic fuel reserve plan worth around $42 billion is in the works to enhance the nation’s energy security. The proposal, aimed at accumulating reserves for two months of crude oil and LNG demand and six weeks of LPG usage, is still awaiting final approval and is being discussed among various ministries.
The government’s strategy includes expanding strategic reserves beyond crude oil for the first time. It involves creating stockpiles to meet demand for crude oil, LNG, and LPG, with funding for gas storage infrastructure to be sourced from user levies, potentially generating around $1.5 billion annually.
An estimated levy of Rs 1.29 per kilogram on LPG and Rs 1.43 per standard cubic meter on PNG is anticipated, which could bring in additional revenue of about $1 billion annually. These charges could lead to an increase of roughly Rs 18 for a 14.2-kilogram domestic gas cylinder. The collected funds are intended for the development of gas storage facilities.
The procedure for collecting these levies remains unclear, but the generated revenues are expected to support the building of natural gas and cooking gas storage infrastructure, while the central government would still finance crude oil reserves and strategic fuel stocks. Compared to other major Asian countries like Japan and South Korea, India’s emergency fuel reserves are currently insufficient, covering less than 10 days of requirements.
Meanwhile The government has emphasized the need for LPG users to complete their eKYC. According to reports, customers who don’t complete their eKYC by August 16th may face problems with gas cylinder bookings and other services. If you haven’t completed your eKYC yet, it’s best to complete it soon rather than waiting until the last minute.
A nationwide campaign is underway to implement eKYC for LPG consumers. Many gas agencies are informing customers about this through SMS, calls, and notices. Consumers who do not complete eKYC by August 16 may face problems booking gas cylinders or other services in the future.