Energy Subsidies in India

India is one of the world's largest users of kerosene, most of which is provided at highly subsidized prices and at significant fiscal cost to poor households through the national Public Distribution System.

A new report from IISD's Global Subsidies Initiative (GSI), entitled Gender and Fossil Fuel Subsidy Reform, suggests that the reform of fossil fuel subsidies should focus assistance towards women in poverty.

This report explores current knowledge on energy subsidy reforms and gender through a review of existing literature. First, it sets out the global context of energy subsidies, energy access and gender empowerment. It then reviews literature on gender, energy access, fossil fuel subsidies and mitigation measures related to subsidy reform, such as cash transfers. Finally, it provides an overview of these issues across three focus countries: Bangladesh, India and Nigeria, as well as case studies on Peru, Mexico and Morocco.

As part of its work on energy policy and sustainable development in India, the Global Subsidies Initiative publishes a regular briefing on issues related to energy subsidies.

China and India, the world’s most populous countries, also match each other on the scale and severity of urban air pollution.

This briefing note sets out some basic information about international experiences with “dual pricing”: selling the same fuel product at two different prices to different types of consumers. It begins with a broad overview of information from international literature and then presents several detailed case studies.

This report examines the performance of the electricity sector in Rajasthan, assessing its ability to recover operating costs, reliably meet demand, make investments and operate according to environmental and social norms.

Kerosene is used by millions of households in rural India to meet basic lighting needs, and subsidies have long been used to make the fuel more affordable. But for health, safety and environmental reasons, a switch to solar power is better—and more affordable in the absence of kerosene subsidies.