India's Fuel Subsidies: Policy recommendations for reform

This policy brief summarizes research conducted by the International Institute for Sustainable Development (IISD), the National Institute for Public Finance and Policy (NIPFP), and The Energy Resource Institute (TERI) regarding the reform of fossil-fuel subsidies in India.

• 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. National oil companies also faced under-recoveries exceeding US$ 8 billion.
• The Government of India aimed to lower total subsidy expenditure to 2% of GDP in 2012-13, with a target of 1.75% in subsequent years. However, reform efforts were hindered by concerns regarding the impact of higher fuel prices on poor citizens and critical economic sectors such as agriculture, industry, and transport.
• Total government subsidy spending, which includes fertilizer and food in addition to fuel, rose by nearly 27% in 2011-12, contributing to a decline in India's fiscal balance.

APA

Lang,, P. W. (2012). India's Fuel Subsidies: Policy recommendations for reform. International Institute for Sustainable Development. https://www.iisd.org/publications/report/indias-fuel-subsidies-policy-recommendations-reform

Chicago

Lang,, Peter Wooders,Kerryn. India's Fuel Subsidies: Policy recommendations for reform. International Institute for Sustainable Development, 2012. https://www.iisd.org/publications/report/indias-fuel-subsidies-policy-recommendations-reform.

Wikipedia

{{cite report |last1=Lang, |first1=Peter Wooders,Kerryn |title=India's Fuel Subsidies: Policy recommendations for reform |publisher=International Institute for Sustainable Development |date=6 September 2012 |url=https://www.iisd.org/publications/report/indias-fuel-subsidies-policy-recommendations-reform |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

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