India's Fuel Subsidies: Q & A

In 2010-11, the Government of India spent over US$ 9 billion on fuel subsidies for diesel, kerosene, LPG, and gasoline, while national oil companies faced over US$ 8 billion in under-recoveries. The government aims to reduce total subsidy expenditure to 2% of GDP in 2012-13 and 1.75% in subsequent years, though reforms are complicated by potential economic disruptions in transport, industry, and agriculture, and the impact on poor citizens. To address this, the Global Subsidies Initiative and partners have evaluated the phase-out of diesel, LPG, and PDS kerosene subsidies and the use of cash-transfer schemes.

• The Government of India spent more than US$ 9 billion on fuel subsidies for diesel, kerosene, LPG, and gasoline in 2010-11, and national oil companies experienced under-recoveries exceeding US$ 8 billion.
• India's total subsidy expenditure, which includes food and fertilizer, rose by nearly 27% in 2011-12, negatively impacting the country's fiscal balance.
• The Indian government intends to lower total subsidy expenditure to 2% of GDP for 2012-13 and further to 1.75% in later years, but reform is hindered by concerns regarding the ability of poor citizens to manage higher prices and potential disruptions to the agriculture, industry, and transport sectors.

APA

Lang,, P. W. (2012). India's Fuel Subsidies: Q & A. International Institute for Sustainable Development. https://www.iisd.org/publications/report/indias-fuel-subsidies-q

Chicago

Lang,, Peter Wooders,Kerryn. India's Fuel Subsidies: Q & A. International Institute for Sustainable Development, 2012. https://www.iisd.org/publications/report/indias-fuel-subsidies-q.

Wikipedia

{{cite report |last1=Lang, |first1=Peter Wooders,Kerryn |title=India's Fuel Subsidies: Q & A |publisher=International Institute for Sustainable Development |date=21 August 2012 |url=https://www.iisd.org/publications/report/indias-fuel-subsidies-q |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{lang2012indias, author = {Lang,, Peter Wooders,Kerryn}, title = {{India's Fuel Subsidies: Q \& A}}, institution = {International Institute for Sustainable Development}, year = {2012}, month = aug, url = {https://www.iisd.org/publications/report/indias-fuel-subsidies-q}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }