Re-Distributing Up: How fuel subsidy policy has short-changed Bihar

The report examines the distribution of centrally financed fuel subsidies in India, highlighting a significant disparity where Bihar, one of the poorest states, consistently receives the lowest per capita transfers for diesel, LPG, and kerosene compared to wealthier states like Haryana, Delhi, and Gujarat.

• Bihar has consistently been the lowest per capita recipient of total fuel subsidy transfers among all Indian states and union territories over the last decade. In the 2013/14 fiscal year, Bihar's average per capita transfer was INR 602, significantly lower than Haryana (INR 2,556), Delhi (INR 1,967), and Punjab (INR 1,912).
• Specific fuel subsidies show extreme disparities: in FY 2013/14, Bihar received less than 10% of the per capita diesel subsidy received by Haryana (INR 175 vs INR 1,770) and less than a sixth of the LPG subsidy received by Delhi (INR 170 vs INR 1,340).
• Even for subsidized kerosene, which is directly determined by the central government, wealthier states received higher allocations than Bihar; for example, Gujarat received INR 371 per person compared to Bihar's INR 257.
• The scale of under-funding is massive; to achieve parity with Haryana's subsidy transfers for the three years ending March 2014, Bihar would have required an additional compensatory transfer of INR 74,008 crore (USD 11.4 billion), or INR 6,859 per person.

APA

Clarke,, K. C. (2015). Re-Distributing Up: How fuel subsidy policy has short-changed Bihar. International Institute for Sustainable Development. https://www.iisd.org/articles/insight/re-distributing-how-fuel-subsidy-policy-has-short-changed-bihar

Chicago

Clarke,, Kieran Clarke,Kieran. Re-Distributing Up: How fuel subsidy policy has short-changed Bihar. International Institute for Sustainable Development, 2015. https://www.iisd.org/articles/insight/re-distributing-how-fuel-subsidy-policy-has-short-changed-bihar.

Wikipedia

{{cite report |last1=Clarke, |first1=Kieran Clarke,Kieran |title=Re-Distributing Up: How fuel subsidy policy has short-changed Bihar |publisher=International Institute for Sustainable Development |date=28 October 2015 |url=https://www.iisd.org/articles/insight/re-distributing-how-fuel-subsidy-policy-has-short-changed-bihar |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{clarke2015redistributing, author = {Clarke,, Kieran Clarke,Kieran}, title = {{Re-Distributing Up: How fuel subsidy policy has short-changed Bihar}}, institution = {International Institute for Sustainable Development}, year = {2015}, month = oct, url = {https://www.iisd.org/articles/insight/re-distributing-how-fuel-subsidy-policy-has-short-changed-bihar}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }