India's Fuel Subsidies: Q & A

This factsheet outlines the fiscal impact of fuel subsidies in India, the government's targets for subsidy reduction, and a series of research reports by IISD, NIPFP, and TERI aimed at reforming diesel, LPG, and kerosene subsidies through mechanisms like cash transfers.

• In the 2010-11 period, the Government of India spent more than US$ 9 billion on subsidies for fuel products, specifically diesel, kerosene, LPG, and gasoline. Additionally, national oil companies experienced under-recoveries exceeding US$ 8 billion.
• Total government subsidy expenditure, which includes food and fertilizer, rose by nearly 27% in 2011-12, negatively impacting India's fiscal balance. The government set a target to lower total subsidy expenditure to 2% of GDP in 2012-13, with a further goal of 1.75% in subsequent years.
• Efforts to reform subsidies are hindered by concerns regarding the impact of higher fuel prices on poor citizens and critical economic sectors, including agriculture, industry, and transport.

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} }