News & Events

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.

The Thai federal government intends to borrow TBH 10 billion (US$ 325 million) from commercial banks to finance domestic fuel subsidies, says Energy Minister Pichai Naripthaphan as quoted by the Bangkok Post.

Japan's trade ministry is asking to more than triple the amount of subsidies next fiscal year in support of companies developing gas and oil fields abroad, aiming to take advantage of a rise in the yen and to secure stable energy supply, reports Reuters.

Cameroon's fuel subsidy bill may top $600 million by the end of the year, 25% over budget, as the central African nation seeks to shelter the public from rising global energy prices in an election year, reports Reuters.

Lebanese parliament approves monthly LBP 400 000 (US$ 265) fuel subsidy payments to public transportation drivers’ for a three month period, reports online Lebanese news site Naharnet. Following the decision, a drivers’ union nationwide strike was suspended.

The Pakistani Ministry of Petroleum and Natural Resources says that the government has been facing revenue loss of PKR 45 billion (US$ 520 million) from providing gas subsidies to industry and power generation companies, reports Pakistani newspaper The Daily Times. 

The Bangladesh government lifts fuel prices by a maximum of 19% per litre to reduce the subsidy on imports of petroleum products, according to Bangladeshi newspaper The Daily Star. Prices of diesel, petrol, octane and kerosene will rise by BDT 5 (US$ 0.07). Bangladesh increased fuel prices for the second time in more than four months in a move that economists fear will fuel inflation.

South Korea’s main supplier of electricity, Korea Electric Power Corp.’s (Kepco),  is likely to post a loss for the fourth year running as price caps aimed at curbing inflation prevent it from passing on higher fuel costs to customers, reports Bloomberg. Kepco posted a KRW 1.64 trillion (US $1.5 billion) loss for the first half of 2011 as capped prices have not risen in line with rising fuel costs or even inflation. 

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.

As progress towards the G-20’s commitment to reform fossil-fuel subsidies remains slow, advocates and champions of reform have begun to look for next steps and alternative paths.