Energy Subsidies in India

As liquified petroleum gas (LPG) prices rise, experts warn that poor households in India may benefit two times less from LPG support than those better-off.

This report considers options for subsidy targeting in India by using a survey of over 900 households to analyze the distribution of LPG subsidies in the state of Jharkhand.

Experience from India shows that increasing taxes on gasoline and diesel are a politically and economically viable way for Indonesia to boost revenues for Covid-19 pandemic response and recovery.

Direct tariff electricity subsidies from state governments have increased 32% since FY 2016, amounting to INR 110,391 crore (USD 14.96 billion) in FY 2019, according to an independent report.

The report examines practical options for subsidy targeting in India by using a survey of over 900 households to analyze the distribution of residential electricity subsidies in the state of Jharkhand. It also examines various strategies to improve subsidy distribution and to better target benefits to poor households.

Electrictity subsidy reforms in India could free up INR 306 crore while making the system more equitable, researchers say.