India’s Fuel Subsidies: Policy Recommendations for Reform


International Institute for Sustainable Development
Kerryn Lang
Peter Wooders
1 August 2012

This brief summarizes findings and recommendations found in the Diesel Pricing in India: Entangled in Policy Maze and Fossil-Fuel Subsidy Reform in India: Cash Transfers for PDS Kerosene and Domestic LPG reports published jointly by the International Institute for Sustainable Development (IISD), Global Subsidies Institute (GSI), and The Energy and Resources Institute (TERI). The recommendations include phasing out liquefied petroleum gas, kerosene, and diesel subsidies, while creating a cash transfer program to reduce the immediate negative impacts to consumers from eliminating the subsidies.