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Explore our resources that focus on subsidies and sustainable development.

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Commentary: What Can You Afford in a Year Without Fuel Subsidies? Financing Development with the Reallocation of Indonesia’s Gasoline and Diesel Subsidies

For a long time, the international community has talked about the benefits that can be created by removing wasteful fossil-fuel subsidies and freeing up expenditure for more worthwhile things—but little analysis has looked at how this works out in practice.  In large part, this is because so few countries, including among the G-20, have implemented ambitious and successful reforms.

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Reports: DBTL Performance Evaluation: Insights from the world's largest subsidy benefit transfer scheme

The Government of India launched the Direct Benefit Transfer for LPG (DBTL) scheme to provide LPG subsidies directly into consumers’ bank accounts with the aim of curbing diversion and weeding out duplicate connections. This study conducted an independent performance evaluation of the modified DBTL scheme, with a focus on assessing the efficacy of the scheme against its stated objectives and its implementation process, as well as the experiences of key stakeholders with the scheme’s implementation and impact. The report unravels the difficulties faced by different stakeholders and puts forward suggestions for reforms. Finally, it provides insights into the lessons learned from the scheme’s implementation. The study surveyed 1,270 households and 92 LPG distributors, interviewed field officers and bank managers, officials at the oil marketing companies and the Ministry of Petroleum and Natural Gas (MoPNG).

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Reports: Financing Development With Fossil Fuel Subsidies: The reallocation of Indonesia's gasoline and diesel subsidies in 2015

At the very end of December 2014, Indonesia introduced major reforms to its fossil fuel subsidies, removing subsidies to gasoline (except for distribution costs outside of the central islands of Java, Bali and Madura) and introducing a “fixed” subsidy of IDR 1,000 per litre for diesel. This study investigates two central questions: Where were these savings reallocated?

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