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Market Chatter: India Weighs Gas Levies to Fund $42 Billion Strategic Fuel Reserve

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India is considering levies on cooking gas and natural gas consumers to help finance a planned $42 billion strategic fuel reserve, Reuters reported on Wednesday.

The plan would, for the first time, create strategic reserves for liquefied petroleum gas and liquefied natural gas alongside crude oil after supply disruptions during the Iran conflict exposed vulnerabilities.

The proposed charges of 1.29 rupees ($0.01) per kilogram of LPG and 1.43 rupees per standard cubic meter of natural gas could reportedly raise about $1.5 billion annually, the sources said. The proposal, which requires cabinet approval, would increase household gas bills by about 2%.

India's Ministry of Petroleum and Natural Gas did not immediately respond to a request for comment from.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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