The Ministry of Petroleum & Natural Gas is responsible for the exploration, production, refining, distribution, marketing, import/export and conservation of oil, natural gas, petroleum products and Liquified Natural Gas (LPG).
Oil was first discovered in India in 1889 in the Northeast Indian state Assam, and during the following year, the first well was completed. Nearly a decade later in 1899, the Assam Oil Company was established to oversee production. By 1955, the Oil and Natural Gas Directorate was established to develop the country’s oil and natural gas resources; it was a subordinate office under the then-Ministry of Natural Resources and Scientific Research. The directorate was raised to commission status in 1956 (Oil and Natural Gas Commission – ONGC) and in 1959 became a statutory body (one created by an act of Parliament) which enhanced its powers to plan and implement programs for the production and sale of petroleum. After India’s economic liberalization in 1991, the ONGC reorganized into a public limited company and became responsible for the majority of the oil and gas production. The government also subsidizes oil and gas prices.
Per item no. 53, list 1, Seventh Schedule, Article 246 of the Constitution of India, the federal government is responsible for the regulation and development of the oil and gas industries. The first Minister of Petroleum and Natural Gas was Ram Naik (1999-2004).
Oil accounts for about 41% of Indian energy consumption, while natural gas consumes 10.6%. The Ministry of Petroleum & Natural Gas administers oil production and industry regulation overseeing:
- Exploration, production, distribution, marketing and pricing of petroleum, natural gas and petroleum products.
- Oil refineries and lube plants.
- Additives for petroleum and petroleum products.
- Lube blending and greases.
- All attached/subordinate offices, other organizations and public sector projects related to oil and natural gas production.
- Planning, development and regulation of oilfield services.
- Engineers India Limited and Indian Oil and its subsidiaries, except projects that are specifically managed by another ministry/department.
- Administration of various laws relating to petroleum and natural gas.
The Ministry’s Public Sector Undertakings (Enterprises) include:
Balmer Lawrie & Co. has eight varied business units, including manufacturing greases and lubricants, performance chemicals and oil and refinery services. Established in 1867, it became a government company known as IBP Balmer Lawrie Group of Companies in 1972. (IBP merged with Indian Oil Corporation Ltd. in 2007)
Bharat Petroleum Corporation Ltd.
The Burmah Shell Group of Companies was taken over by the Government of India on January 24, 1976, and became Bharat Refineries Limited. It was renamed Bharat Petroleum Corporation Limited on August 1, 1977, and is headquartered in Mumbai, Maharashtra. In addition to producing fuels, solvents and other industrial products for commercial clients, Bharat Petroleum serves the retail market through LPG gas service/distribution and with its own gas stations.
Biecco Lawrie manufactures and services switchgears, performs industrial electrical repairs and blends industrial and motor oil. Originally an electrical item (e.g., tea machines, fans, motors) manufacturer and repairer, Biecco (British India Electric Construction Co. Limited) became Biecco Lawrie in 1970. Two years later it became a government company when Balmer Lawrie joined IBP. It is now a separate government public sector undertaking.
Bongaigaon Refinery and Petro-Chemicals Ltd.
Bongaigaon Refinery and Petro-Chemicals produces a wide range of petroleum products: LPG, naphtha, petrol, superior kerosense, high speed diesel, light diesel oil, low sulphur heavy stock, low viscosity furnace oil, raw petroleum coke, calcined petroleum coke, needle coke and solvents. Becoming a public sector undertaking in 1974, it has branches throughout India.
Chennai Petroleum Corporation Limited
Formed in 1965, Chennai Petroleum Corporation Limited (CPCL) has refineries located in Manali, Himachal Pradesh and Nagapattinam, Tamil Nadu. CPCL produces LPG, petrol, superior kerosene, aviation turbine fuel, high speed diesel, naphtha, bitumen, lube base stocks, paraffin wax, fuel oil, hexane and petrochemical feed stocks. It is a subsidiary of Indian Oil Corporation.
Kochi Refineries Limited
Located in Kochi, Kerala, Kochi Refineries Limited produces liquefied petroleum gas (LPG), naphtha, gasoline, kerosene, aviation turbine fuel, gas oil, fuel oil, and bitumen. It also makes benzene, toluene, white spirit, poly iso butene and sulphur for the domestic market and fuel oil and low aromatic naphtha (high paraffinic) for the international market. Bharat Petroleum acquired the refinery in 2001.
Engineers India provides design, engineering and turnkey contracting in the following areas: petroleum refining, petrochemicals, chemicals, fertilizers, pipelines, on-/offshore oil and gas, terminals, storages, mining and metallurgy and infrastructure.
GAIL (Gas Authority of India Ltd.)
GAIL is the largest state-owned natural gas processing and distribution company. Headquartered in New Delhi, India, GAIL operates in the following sectors: natural gas, liquid hydrocarbon, LPG transmission, petrochemicals, city gas distribution, exploration and production. It branched out into business telecom services (GAILTEL) and electricity generation (via a natural gas-powered plant).
Hindustan Petroleum Corporation Ltd.
Hindustan Petroleum Corporation (HPCL) operates two petroleum refineries and India’s largest lube refinery. Major products produced are petrol, diesel, lubricants, LPG, aviation turbine fuel, bitumen and furnace oil. HPCL’s petrol and diesel are available at it’s own HP branded gas stations.
Indian Oil Corporation is the country’s flagship government oil company. With its subsidiary Chennai Petroleum Corporation Limited (CPCL), the group accounts for a 49% petroleum products market share and 31% national refining capacity. It owns and operates 10 of India's 22 refineries. Major products include: petrol, diesel, LPG, auto LPG, aviation turbine fuel, lubricants, naphtha, bitumen, paraffin and kerosene. Like HPCL and Bharat Petroleum, Indian Oil also runs retail gas stations throughout the country.
Numaligarh Refinery Ltd.
Located in Assam, the Numaligarh Refinery began production in 2000. It produces LPG, naphtha, petrol, aviation turbine fuel, superior kerosene oil, high speed diesel, raw petroleum coke, calcined petroleum coke and sulphur.
Oil India Ltd (OIL) became a wholly-owned government of India enterprise in 1981 and is based in Assam. It focuses on exploration, development and production of crude oil and natural gas, transportation of crude oil and the production of liquid petroleum gas.
Oil & Natural Gas Corporation Ltd
Oil and Natural Gas Corporation Limited (ONGC) is a multinational oil and gas exploration and production group. ONGC produces around 77% of India's crude oil and around 81% of its natural gas. Its international arm, ONGC Videsh Limited, has 14 projects spanning 16 countries. ONGC Tripura Power Company Ltd is developing a thermal plant to supply electricity to the North Eastern states.
Indian governmental budgets have “non-plan” and “plan” outlays. “Non-plan” expenses include capital expenditure, revenue expenditure on interest payments, postal deficit, pensions, economic services, defense expenditure and subsidies. “Non-plan ” also includes spending on police, loans and grants to the public sector, governments (State or foreign and Union territories). “Plan” is money needed execute the Indian government’s Central Plan. It consists of capital, revenue and Central assistance to Union territories and States.
- Non-Plan Budget (2012-13): Rs 43716.85 crore ($8.04 billion USD)
- Plan Budget (2012-13): Rs 79684.88 crore ($14.62 billion USD)
The Non-Plan Budget (2012-13) is comprised mainly of subsidies for: domestic LPG (liquified natural gas), PDS (public distribution system), food distribution for India’s poor, kerosene, freight on retail products for remote areas, supply of natural gas to North East Region and the setting up of the Petroleum Regulatory Board. This budget also includes Rs 40000 crore ($7.34 billion USD) to compensate oil companies for losses from selling sensitive petroleum products.
The Plan Budget (2012-13) is made up of the Internal and Extra Budgetary Resources
(IEBR) of Oil PSU (public sector undertakings). IEBR are funds from profits, loans and equity; the government does not provide any budgetary support to them. The Planning Commission approves the Oil PSU Annual Plan to implement various projects. The Annual Plan 2012-13 is Rs. 79684.88 crore ($14.62 billion USD), paid from Oil PSUs IEBR.
Some of the ministry’s public sector ventures spending are:
- Bharat Petroleum Corporation Ltd.: Rs. 4479.00 crore ($821.68 million USD)
- GAIL (Gas Authority of India Ltd.): Rs. 9447 crore ($1.73 billion USD)
- Hindustan Petroleum Corporation Ltd.: Rs. 3467.43 crore ($636.11 million USD)
- Indian Oil Corporation Ltd.: Rs.10000 crore ($1.83 billion USD)
- Oil & Natural Gas Corporation Ltd: Rs. 33065.31 crore ($6.07 billion USD)
- Oil India Ltd.: Rs 3378.39 crore ($619.77 million USD)
Lack of Ministry Oversight over Reliance Industries
In 2002, Reliance Industries discovered India’s largest natural gas reserves in the Krishna-Godavari Basin (KG Basin) D6 exploratory block in Andhra Pradesh. In September 2011, the Comptroller and Auditor General of India’s (CAG) report criticized the Ministry and Reliance Industries. The CAG accused Reliance of violating the Production Sharing Contract; after discovering the gas reserves, the company should have let go of 25% of the total area outside the gas reserves but didn’t by claiming that whole area was a discovery zone. The CAG faulted the Ministry for allowing that to happen. Also the CAG report claimed lack of government oversight since Reliance award 8 out of 10 contracts on single-bid basis.
Reliance Gas - Find 40 Times Bigger Than Bombay High (by Hemangi Balse, Business Standard)
CAG Flays Oil Min for Allowing RIL to Retain D6 Area (India Today)
GAIL Accused of Illegal Profits
In October 2011 a Member of Parliament, Ramsinh Rathwa, a Bharatiya Janata Party MP from Gujarat, alleged in a letter to the prime minister that GAIL was making illegal profits selling natural gas used to make LPG at three times the price. GAIL purchased the gas at a price of $4.2 USD per million British thermal units from Reliance and sold it for imported prices (between $12-17 USD) resulting in a net loss to exchequer.
GAIL’s gas allotment from the D6 block was based on increasing the amount of LPG available to the public. Instead its production level remained the same. GAIL, via an anonymous company source, claimed that the D6 gas was to supplement falling supplies from another gas area. The CAG will begin a second Reliance KG-D6 audit on January 9, 2013.
GAIL Making Illegal Profits by Diverting Its Share of KG Gas: Ramsinh Rathwa, BJP MP (Economic Times)
CAG to Begin KG-D6 Audit on 9 Jan (Press Trust of India)
Raising Subsidized Liquefied Petroleum Gas Quotas
Raising subsidized liquefied petroleum gas (LPG) cylinder quota from 6 to 9 per household. LPG is used by 28.5% of Indian households to cook. Since LPG is government subsidized, any changes in the pricing/quota generally affects India’s urban middle class and subsequently voting.
Petroleum Minister Veerappa Moily's proposal proposed raising the quota from 6 to 9. In January 2013, the government approved raising the quota after consulting with the Election Commission of India (ECI). The ECI’s consultation was sought to make sure that the proposal wasn’t violating any of the ECI’s Model Code of Conduct since elections are being held in Nagaland, Meghalaya and Tripura in February 2013.
The ECI provided no objection and the new cap will be in effect April 2013.
Subsidised LPG costs Rs 410.50 ($7.64) per 14.2- kg cylinder and after 9 cylinders each will cost Rs. 895.50 ($16.67) in Delhi.
Pro-ECI approving raising LPG cylinder subsidized cap
Only 44 percent of households in the country consume six cylinders in a year, while the majority consumed 9-12 bottles. By not raising the cap households would face 100% increase for additional market-rate cylinders and the government was wary of any political backlash.
Govt to Raise Cap on Subsidised LPG Cylinders to 9 Per Year (Press Trust of India)
Anti-ECI approving raising LPG cylinder subsidized cap
In September 2012, the government capped the subsidized cylinders to 6 per household per year in order to prevent unintended beneficiaries. Also raising the cap raising government subsidy spending by Rs. 9,300 crore ($1.73 billion USD) annually.
Govt Raises LPG Cap To Nine Cylinders (Press Trust of India)
Diesel Price Hike Coming Soon As Govt Clears Deregulation, Raises LPG Cylinder Quota to 9 from 6 (Press Trust of India)
As of July 2012, the government had already spent the majority of its budget allocated for fuel subsidies in 2012–13. With the goal of keeping total subsidies at 2% of GDP and reducing it to 1.7% over the coming year, stronger reforms are needed in oil and gas subsidies. The International Institute for Sustainable Development (IISD) suggests various reforms. One would be phasing out LPG subsidies by capping subsidizes LPG cyclinders at 8 (the government approved 9 for 2013), then developing a plan to increase LPG retail prices and ending subsidies. In the long term, IISD suggest the government provide support to low-income families to use cleaner and more efficient cooking fuels.
India’s Fuel Subsidies: Policy (by Kerryn Lang and Peter Wooders, International Institute for Sustainable Development)
- Table of Contents
- Overview
- History
- What it Does
- Where Does the Money Go
- Controversies
- Debate
- Suggested Reforms
- Former Directors
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Ministry of Petroleum and Natural Gas
The Ministry of Petroleum & Natural Gas is responsible for the exploration, production, refining, distribution, marketing, import/export and conservation of oil, natural gas, petroleum products and Liquified Natural Gas (LPG).
Oil was first discovered in India in 1889 in the Northeast Indian state Assam, and during the following year, the first well was completed. Nearly a decade later in 1899, the Assam Oil Company was established to oversee production. By 1955, the Oil and Natural Gas Directorate was established to develop the country’s oil and natural gas resources; it was a subordinate office under the then-Ministry of Natural Resources and Scientific Research. The directorate was raised to commission status in 1956 (Oil and Natural Gas Commission – ONGC) and in 1959 became a statutory body (one created by an act of Parliament) which enhanced its powers to plan and implement programs for the production and sale of petroleum. After India’s economic liberalization in 1991, the ONGC reorganized into a public limited company and became responsible for the majority of the oil and gas production. The government also subsidizes oil and gas prices.
Per item no. 53, list 1, Seventh Schedule, Article 246 of the Constitution of India, the federal government is responsible for the regulation and development of the oil and gas industries. The first Minister of Petroleum and Natural Gas was Ram Naik (1999-2004).
Oil accounts for about 41% of Indian energy consumption, while natural gas consumes 10.6%. The Ministry of Petroleum & Natural Gas administers oil production and industry regulation overseeing:
- Exploration, production, distribution, marketing and pricing of petroleum, natural gas and petroleum products.
- Oil refineries and lube plants.
- Additives for petroleum and petroleum products.
- Lube blending and greases.
- All attached/subordinate offices, other organizations and public sector projects related to oil and natural gas production.
- Planning, development and regulation of oilfield services.
- Engineers India Limited and Indian Oil and its subsidiaries, except projects that are specifically managed by another ministry/department.
- Administration of various laws relating to petroleum and natural gas.
The Ministry’s Public Sector Undertakings (Enterprises) include:
Balmer Lawrie & Co. has eight varied business units, including manufacturing greases and lubricants, performance chemicals and oil and refinery services. Established in 1867, it became a government company known as IBP Balmer Lawrie Group of Companies in 1972. (IBP merged with Indian Oil Corporation Ltd. in 2007)
Bharat Petroleum Corporation Ltd.
The Burmah Shell Group of Companies was taken over by the Government of India on January 24, 1976, and became Bharat Refineries Limited. It was renamed Bharat Petroleum Corporation Limited on August 1, 1977, and is headquartered in Mumbai, Maharashtra. In addition to producing fuels, solvents and other industrial products for commercial clients, Bharat Petroleum serves the retail market through LPG gas service/distribution and with its own gas stations.
Biecco Lawrie manufactures and services switchgears, performs industrial electrical repairs and blends industrial and motor oil. Originally an electrical item (e.g., tea machines, fans, motors) manufacturer and repairer, Biecco (British India Electric Construction Co. Limited) became Biecco Lawrie in 1970. Two years later it became a government company when Balmer Lawrie joined IBP. It is now a separate government public sector undertaking.
Bongaigaon Refinery and Petro-Chemicals Ltd.
Bongaigaon Refinery and Petro-Chemicals produces a wide range of petroleum products: LPG, naphtha, petrol, superior kerosense, high speed diesel, light diesel oil, low sulphur heavy stock, low viscosity furnace oil, raw petroleum coke, calcined petroleum coke, needle coke and solvents. Becoming a public sector undertaking in 1974, it has branches throughout India.
Chennai Petroleum Corporation Limited
Formed in 1965, Chennai Petroleum Corporation Limited (CPCL) has refineries located in Manali, Himachal Pradesh and Nagapattinam, Tamil Nadu. CPCL produces LPG, petrol, superior kerosene, aviation turbine fuel, high speed diesel, naphtha, bitumen, lube base stocks, paraffin wax, fuel oil, hexane and petrochemical feed stocks. It is a subsidiary of Indian Oil Corporation.
Kochi Refineries Limited
Located in Kochi, Kerala, Kochi Refineries Limited produces liquefied petroleum gas (LPG), naphtha, gasoline, kerosene, aviation turbine fuel, gas oil, fuel oil, and bitumen. It also makes benzene, toluene, white spirit, poly iso butene and sulphur for the domestic market and fuel oil and low aromatic naphtha (high paraffinic) for the international market. Bharat Petroleum acquired the refinery in 2001.
Engineers India provides design, engineering and turnkey contracting in the following areas: petroleum refining, petrochemicals, chemicals, fertilizers, pipelines, on-/offshore oil and gas, terminals, storages, mining and metallurgy and infrastructure.
GAIL (Gas Authority of India Ltd.)
GAIL is the largest state-owned natural gas processing and distribution company. Headquartered in New Delhi, India, GAIL operates in the following sectors: natural gas, liquid hydrocarbon, LPG transmission, petrochemicals, city gas distribution, exploration and production. It branched out into business telecom services (GAILTEL) and electricity generation (via a natural gas-powered plant).
Hindustan Petroleum Corporation Ltd.
Hindustan Petroleum Corporation (HPCL) operates two petroleum refineries and India’s largest lube refinery. Major products produced are petrol, diesel, lubricants, LPG, aviation turbine fuel, bitumen and furnace oil. HPCL’s petrol and diesel are available at it’s own HP branded gas stations.
Indian Oil Corporation is the country’s flagship government oil company. With its subsidiary Chennai Petroleum Corporation Limited (CPCL), the group accounts for a 49% petroleum products market share and 31% national refining capacity. It owns and operates 10 of India's 22 refineries. Major products include: petrol, diesel, LPG, auto LPG, aviation turbine fuel, lubricants, naphtha, bitumen, paraffin and kerosene. Like HPCL and Bharat Petroleum, Indian Oil also runs retail gas stations throughout the country.
Numaligarh Refinery Ltd.
Located in Assam, the Numaligarh Refinery began production in 2000. It produces LPG, naphtha, petrol, aviation turbine fuel, superior kerosene oil, high speed diesel, raw petroleum coke, calcined petroleum coke and sulphur.
Oil India Ltd (OIL) became a wholly-owned government of India enterprise in 1981 and is based in Assam. It focuses on exploration, development and production of crude oil and natural gas, transportation of crude oil and the production of liquid petroleum gas.
Oil & Natural Gas Corporation Ltd
Oil and Natural Gas Corporation Limited (ONGC) is a multinational oil and gas exploration and production group. ONGC produces around 77% of India's crude oil and around 81% of its natural gas. Its international arm, ONGC Videsh Limited, has 14 projects spanning 16 countries. ONGC Tripura Power Company Ltd is developing a thermal plant to supply electricity to the North Eastern states.
Indian governmental budgets have “non-plan” and “plan” outlays. “Non-plan” expenses include capital expenditure, revenue expenditure on interest payments, postal deficit, pensions, economic services, defense expenditure and subsidies. “Non-plan ” also includes spending on police, loans and grants to the public sector, governments (State or foreign and Union territories). “Plan” is money needed execute the Indian government’s Central Plan. It consists of capital, revenue and Central assistance to Union territories and States.
- Non-Plan Budget (2012-13): Rs 43716.85 crore ($8.04 billion USD)
- Plan Budget (2012-13): Rs 79684.88 crore ($14.62 billion USD)
The Non-Plan Budget (2012-13) is comprised mainly of subsidies for: domestic LPG (liquified natural gas), PDS (public distribution system), food distribution for India’s poor, kerosene, freight on retail products for remote areas, supply of natural gas to North East Region and the setting up of the Petroleum Regulatory Board. This budget also includes Rs 40000 crore ($7.34 billion USD) to compensate oil companies for losses from selling sensitive petroleum products.
The Plan Budget (2012-13) is made up of the Internal and Extra Budgetary Resources
(IEBR) of Oil PSU (public sector undertakings). IEBR are funds from profits, loans and equity; the government does not provide any budgetary support to them. The Planning Commission approves the Oil PSU Annual Plan to implement various projects. The Annual Plan 2012-13 is Rs. 79684.88 crore ($14.62 billion USD), paid from Oil PSUs IEBR.
Some of the ministry’s public sector ventures spending are:
- Bharat Petroleum Corporation Ltd.: Rs. 4479.00 crore ($821.68 million USD)
- GAIL (Gas Authority of India Ltd.): Rs. 9447 crore ($1.73 billion USD)
- Hindustan Petroleum Corporation Ltd.: Rs. 3467.43 crore ($636.11 million USD)
- Indian Oil Corporation Ltd.: Rs.10000 crore ($1.83 billion USD)
- Oil & Natural Gas Corporation Ltd: Rs. 33065.31 crore ($6.07 billion USD)
- Oil India Ltd.: Rs 3378.39 crore ($619.77 million USD)
Lack of Ministry Oversight over Reliance Industries
In 2002, Reliance Industries discovered India’s largest natural gas reserves in the Krishna-Godavari Basin (KG Basin) D6 exploratory block in Andhra Pradesh. In September 2011, the Comptroller and Auditor General of India’s (CAG) report criticized the Ministry and Reliance Industries. The CAG accused Reliance of violating the Production Sharing Contract; after discovering the gas reserves, the company should have let go of 25% of the total area outside the gas reserves but didn’t by claiming that whole area was a discovery zone. The CAG faulted the Ministry for allowing that to happen. Also the CAG report claimed lack of government oversight since Reliance award 8 out of 10 contracts on single-bid basis.
Reliance Gas - Find 40 Times Bigger Than Bombay High (by Hemangi Balse, Business Standard)
CAG Flays Oil Min for Allowing RIL to Retain D6 Area (India Today)
GAIL Accused of Illegal Profits
In October 2011 a Member of Parliament, Ramsinh Rathwa, a Bharatiya Janata Party MP from Gujarat, alleged in a letter to the prime minister that GAIL was making illegal profits selling natural gas used to make LPG at three times the price. GAIL purchased the gas at a price of $4.2 USD per million British thermal units from Reliance and sold it for imported prices (between $12-17 USD) resulting in a net loss to exchequer.
GAIL’s gas allotment from the D6 block was based on increasing the amount of LPG available to the public. Instead its production level remained the same. GAIL, via an anonymous company source, claimed that the D6 gas was to supplement falling supplies from another gas area. The CAG will begin a second Reliance KG-D6 audit on January 9, 2013.
GAIL Making Illegal Profits by Diverting Its Share of KG Gas: Ramsinh Rathwa, BJP MP (Economic Times)
CAG to Begin KG-D6 Audit on 9 Jan (Press Trust of India)
Raising Subsidized Liquefied Petroleum Gas Quotas
Raising subsidized liquefied petroleum gas (LPG) cylinder quota from 6 to 9 per household. LPG is used by 28.5% of Indian households to cook. Since LPG is government subsidized, any changes in the pricing/quota generally affects India’s urban middle class and subsequently voting.
Petroleum Minister Veerappa Moily's proposal proposed raising the quota from 6 to 9. In January 2013, the government approved raising the quota after consulting with the Election Commission of India (ECI). The ECI’s consultation was sought to make sure that the proposal wasn’t violating any of the ECI’s Model Code of Conduct since elections are being held in Nagaland, Meghalaya and Tripura in February 2013.
The ECI provided no objection and the new cap will be in effect April 2013.
Subsidised LPG costs Rs 410.50 ($7.64) per 14.2- kg cylinder and after 9 cylinders each will cost Rs. 895.50 ($16.67) in Delhi.
Pro-ECI approving raising LPG cylinder subsidized cap
Only 44 percent of households in the country consume six cylinders in a year, while the majority consumed 9-12 bottles. By not raising the cap households would face 100% increase for additional market-rate cylinders and the government was wary of any political backlash.
Govt to Raise Cap on Subsidised LPG Cylinders to 9 Per Year (Press Trust of India)
Anti-ECI approving raising LPG cylinder subsidized cap
In September 2012, the government capped the subsidized cylinders to 6 per household per year in order to prevent unintended beneficiaries. Also raising the cap raising government subsidy spending by Rs. 9,300 crore ($1.73 billion USD) annually.
Govt Raises LPG Cap To Nine Cylinders (Press Trust of India)
Diesel Price Hike Coming Soon As Govt Clears Deregulation, Raises LPG Cylinder Quota to 9 from 6 (Press Trust of India)
As of July 2012, the government had already spent the majority of its budget allocated for fuel subsidies in 2012–13. With the goal of keeping total subsidies at 2% of GDP and reducing it to 1.7% over the coming year, stronger reforms are needed in oil and gas subsidies. The International Institute for Sustainable Development (IISD) suggests various reforms. One would be phasing out LPG subsidies by capping subsidizes LPG cyclinders at 8 (the government approved 9 for 2013), then developing a plan to increase LPG retail prices and ending subsidies. In the long term, IISD suggest the government provide support to low-income families to use cleaner and more efficient cooking fuels.
India’s Fuel Subsidies: Policy (by Kerryn Lang and Peter Wooders, International Institute for Sustainable Development)
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