Energy Subsidies in India

Kerosene subsidies are expensive: estimated to be more than US$ 4 billion in West Africa and more than US$ 5 billion in India. What are governments—often with highly limited resources—achieving by spending all this money? And with an increasing number of countries committing to reform subsidies, what will it mean for energy access if these policies are removed?

Jointly prepared by IISD, OCI and ODI, this country study and accompanying data sheet compiles publicly available information on fossil fuel production subsidies in India in 2013 and 2014.

Despite significant social and economic progress in recent years, the development challenges facing the Indian state of Bihar remain profound. The state, one of the poorest and most populous in the Indian Union, goes to the polls for State Assembly elections in October 2015.

Further to our recent blog post analyzing the fiscal impact of direct transfer for LPG in FY 2014-15, this blog provides additional data on recent trends in LPG consumption and subsidy expenditure.

This study, undertaken by IISD-GSI and ICF International, untangles the energy-water nexus by analyzing how subsidized electricity has incentivized groundwater extraction in Haryana, India.

Since April 1st 2015, India’s cooking gas subsidies have been distributed solely by electronic transfer through the Direct Benefit Transfer for Liquefied Petroleum Gas scheme (otherwise known as DBTL or PAHAL).

This data brief updates the calculations of total and average per capita fuel subsidy expenditure by state and Union Territory (UT) provided in IISD’s previous data brief on the spatial distribution of fossil fuel subsidies in India for fiscal year (FY) 2013/14.

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.