Energy Subsidies in India

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

DELHI – 18 January 2013 – The Cabinet Committee on Political Affairs (CPPA), under the leadership of Prime Minister Manmohan Singh, announced yesterday that it would increase India’s diesel prices, and continue to do so through a series of phased hikes, until the existing INR 9.60 (US$ 0.18) per litre subsidy is eliminated.

DELHI - 14 September 2012 – The Government of India today announced a 14% increase in the diesel price and new quotas for subsidized LPG cylinders in a bid to reduce its mounting fuel subsidy budget. The reforms are intended to shore up India’s weakening fiscal position.

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.

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.

An overview of petroleum-product subsidies in India.

A summary of major events in April and May 2011.

In February 2011, the GSI launched the report Measuring irrigation subsidies in Andhra Pradesh and Southern India: An application of the GSI Method for quantifying subsidies.