India's Energy Transition: Subsidies for gasoline, diesel and electric vehicles

This briefing by the International Institute for Sustainable Development compares the scale of India's subsidies for conventional fuels versus electric vehicles, highlighting that fuel price cuts between October 2018 and June 2019 significantly outweighed the budget for the FAME II electric vehicle program.

• Between October 2018 and June 2019, the Indian central government provided subsidies for gasoline and diesel totaling INR 26,957 crore (USD 3.9 billion). This amount was nearly three times the three-year budget of INR 10,000 crore (USD 1.4 billion) allocated for the government's flagship electric vehicle (EV) subsidy program.
• The fuel subsidies from October 2018 to June 2019 were driven by a central government decision to reduce the excise tax on fuel by INR 1.5 (USD 0.02) per litre and a requirement for state-owned oil marketing companies (OMCs) to lower their margin by INR 1 (USD 0.01). This policy was partially reversed in the 2019-2020 Union Budget.
• The Indian government has implemented the second phase of its electric vehicle subsidy program, known as the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, or FAME II, with an allocation of INR 10,000 crore (USD 1.4 billion) over three years.

APA

Jain,, T. L. (2019). India's Energy Transition: Subsidies for gasoline, diesel and electric vehicles. International Institute for Sustainable Development. https://www.iisd.org/publications/brief/indias-energy-transition-subsidies-gasoline-diesel-and-electric-vehicles

Chicago

Jain,, Tara Laan,Purva. India's Energy Transition: Subsidies for gasoline, diesel and electric vehicles. International Institute for Sustainable Development, 2019. https://www.iisd.org/publications/brief/indias-energy-transition-subsidies-gasoline-diesel-and-electric-vehicles.

Wikipedia

{{cite report |last1=Jain, |first1=Tara Laan,Purva |title=India's Energy Transition: Subsidies for gasoline, diesel and electric vehicles |publisher=International Institute for Sustainable Development |date=24 July 2019 |url=https://www.iisd.org/publications/brief/indias-energy-transition-subsidies-gasoline-diesel-and-electric-vehicles |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{jain2019indias, author = {Jain,, Tara Laan,Purva}, title = {{India's Energy Transition: Subsidies for gasoline, diesel and electric vehicles}}, institution = {International Institute for Sustainable Development}, year = {2019}, month = jul, url = {https://www.iisd.org/publications/brief/indias-energy-transition-subsidies-gasoline-diesel-and-electric-vehicles}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }