LPG Price Hike: Domestic LPG cylinder prices may see an increase in the coming days. The central government is considering a plan to build strategic reserves of LPG and natural gas to strengthen the country’s energy security. A proposal has been developed to charge consumers a small additional fee for this project. However, final approval has not yet been received.
How much can the cost of cylinder increase?
According to the proposed plan, an additional charge of ₹1.29 per kilogram could be imposed on LPG and ₹1.43 per standard cubic meter on PNG. If implemented, the price of a 14.2-kilogram domestic gas cylinder could increase by approximately ₹18. Meanwhile, monthly bills for PNG consumers could also increase by approximately 2 percent.
What is the government’s preparation?
The government aims to build sufficient gas reserves to address any future international crisis or disruption to fuel supplies. The need for energy security has become more pressing than ever following the recent crisis in West Asia. A long-term gas storage plan is being developed with this in mind.
A large amount will be raised every year
The proposed fee is expected to generate approximately $1.5 billion annually after implementation. This funding will be used to expand gas storage capacity, develop new storage facilities, and build necessary infrastructure.
The big project will be completed in 10 years.
The government is working on a plan to develop strategic LPG and LNG storage capacity over the next decade at a cost of approximately $42 billion. This will create a system to store millions of tonnes of gas in the country to minimize the impact on the public in the event of supply disruptions.
Final decision still pending (LPG Price Hike)
At present, no official decision has been made regarding the additional fee. If the government approves this proposal, both domestic gas cylinders and PNG may see a slight increase in their cost.