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CommodityWireAssam govt proposes to slash VAT on PNG to 5% to support city gas expansion

Assam govt proposes to slash VAT on PNG to 5% to support city gas expansion

This story was originally published at 13:49 IST on 10 July 2026
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Informist, Friday, Jul. 10, 2026

 

NEW DELHI – The Assam government, in its Budget for 2026-27 (Apr-Mar), proposed reducing the value added tax on piped natural gas to 5.0% from 14.5% to support the expansion of city gas. This will also help lower household energy cost, Assam Finance Minister Jayanta Malla Baruah said Friday. 

 

This comes soon after the West Asia crisis exposed India's fragile domestic fuel availability as supply disruptions caused widespread shortage in liquefied petroleum gas, India's primary cooking gas. India imported about 60% of its overall cooking gas requirements. Of this, around 90% was routed through the Strait of Hormuz, the primary disruption point after the US and Israel launched a military attack on Iran on Feb. 28.

 

In the wake of the severe energy crisis following the war, the government had to mandate that consumers with PNG connections would neither be allowed to obtain a new LPG connection nor retain an existing additional connection. Individuals having both LPG and PNG connections were also asked to immediately surrender their domestic LPG connection.

 

With this move, Assam will join the Centre in its drive to expand the usage of PNG as much as possible.  End

 

Reported by Priyasmita Dutta

Edited by Akul Nishant Akhoury

 

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