Huge decline recorded in oil and gas sector subsidies, decrease of 85 per cent in 10 years
New Delhi| Oil and gas sector subsidies have decreased by 85 per cent in 10 years. According to the Ministry of New and Renewable Energy (MNRE), the sector received $25 billion in subsidies in 2013, which dropped to $3.5 billion by 2023.
Since 2010, India has reformed fossil fuel subsidies, adopting a remove, target and change approach, the Ministry of New and Renewable Energy said based on an Asian Development Bank (ADB) report. Adjusting retail prices, tax rates and subsidies on select petroleum products has reduced subsidies in the oil-gas sector.
Its objective was to gradually eliminate petrol-diesel subsidy and increase taxes. This created fiscal space for greater government support in renewable energy initiatives, e-vehicles and power infrastructure.
