Pressure mounts on India to reform LNG taxes

India's Kochi LNG terminal. (Petronet LNG)

The Federation of Indian Petroleum Industry (FIPI) is pushing the government for tax reforms that would make LNG more competitive in the world’s fastest-growing energy market. The reforms could soon be approved and, if implemented, would improve the affordability of gas and help bolster demand.

LNG is heavily taxed in India, unlike other commodities such as coal. But the oppressive tax system for LNG could be overhauled “within the next few months”, R.K. Malhotra, director general of the FIPI, told delegates at the...