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Energy Subsidies in India

The GSI’s India country program undertakes research and policy engagement on energy subsidies for fuel consumers, fuel producers and renewable energy.

Research

Objectives
  • Reduce overall fossil fuel subsidy expenditure
  • Improve the progressive social distribution of subsidy expenditure
  • Increase clean energy access and use, particularly among poorer households

News: India Begins Phased Diesel Price Hikes

January 18, 2013
DELHI – 18 January 2013 – The Cabinet Committee on Political Affairs (CPPA), under the leadership of Prime Minister Manmohan Singh, announced yesterday that it would increase India’s diesel prices, and continue to do so through a series of phased hikes, until the existing INR 9.60 (US$ 0.18) per litre subsidy is eliminated.

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News: India cuts subsidies for diesel and LPG

September 14, 2012
DELHI - 14 September 2012 – The Government of India today announced a 14% increase in the diesel price and new quotas for subsidized LPG cylinders in a bid to reduce its mounting fuel subsidy budget. The reforms are intended to shore up India’s weakening fiscal position.

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News: India to Limit Fuel Subsidies to US$ 8.15 Billion

October 3, 2011
India plans to limit its fuel subsidies at INR 400 billion (US$ 8.15 billion) this fiscal year, scaling down its initial estimate by INR 50 billion following easing crude oil prices and a higher borrowing target, a senior finance ministry official said, as quoted by the Wall Street Journal.

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News: India Subsidizes Small Electricity Consumers

September 2, 2011
A week after a 22% increase in electricity tariffs, the Indian federal government takes a decision to provide a subsidy of INR 1 (US$ 0.02) per unit to domestic consumers whose monthly consumption of electricity does not exceed 200 units, reports Indian newspaper The Economic Times.

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