Consumer Fossil Fuel Subsidies

Foreign direct investment (FDI) has made a major contribution to Viet Nam’s impressive structural transformation and economic growth since the 1990s. As the country continues to pursue an ambitious development agenda, with FDI likely to play a central role in this process, it is important for policy-makers to better understand the needs and concerns of foreign businesses regarding energy supply and pricing. The satisfaction of businesses with domestic energy market conditions may be one factor in determining the ease with which Viet Nam can attract the high-quality FDI that can help deliver key developmental goals.

The Indian government’s declaration of a formal end to diesel price regulation in October 2014 marked the culmination of a two-year process of price reform. The effective removal of diesel subsidies, although not yet accompanied by comprehensive price decontrol, nevertheless represents an important milestone in the reform of energy pricing in India, and provides policy-makers with a useful case study of successful fossil fuel subsidy reform. This report investigates lessons learned.

Turkey faces a problem that is common to many developing countries: a growing economy and a growing demand for energy.  By 2030, electricity consumption is expected to rise from 240 TWh to over 600 TWh. Turkey plans a huge increase in coal-fuelled power generation to fill the gap.

This report analyzes kerosene subsidies received by the state governments through the Public Distribution System.

On Saturday 18th October the Indian Government announced a series of policy decisions in relation to energy, including decontrol of diesel pricing, revision of natural gas prices on a market-linked basis, and proposed changes to domestic LPG subsidy entitlements and delivery mechanisms. This package of measures, presented as a reflection of the new NDA administration’s reformist intent, represents a complex mix of continuity and change in relation to the previous UPA government’s policies, with important implications (both positive and negative) for the future direction of Indian energy policy.

This report brings to light the Government of India’s spending on fuel subsidies.

Phase out subsidies for fossil-fuels and agricultural inputs, and incentives for urban sprawl, to drive more efficient use of resources and release public funds for other uses, including programmes to benefit those on low incomes.