Subsidies in the oil and gas industry have decreased by 85% over the last decade. According to the Ministry of New and Renewable Energy (MNRE), a subsidy that used to go to this industry in 2013 was $25 billion; by 2023, it has come down to $3.5 billion.

The Ministry of New and Renewable Energy, quoting a report by the Asian Development Bank (ADB), said that during the period starting from 2010 onward, India undertook reforms of the fossil fuel subsidies following the approach to Remove, Target, and Replace. Tuning the retail prices, tax rates, and subsidies on selective petroleum products disincentivized the subsidies in the oil and gas sector.

The purpose was the gradual abolition of petrol and diesel subsidies, increasing the taxes. This freed fiscal space for more government support in renewable energy initiatives, e-vehicles, and power infrastructure.

Subsidies in the oil and gas industry have decreased by 85% over the last decade. According to the Ministry of New and Renewable Energy (MNRE), a subsidy that used to go to this industry in 2013 was $25 billion; by 2023, it has come down to $3.5 billion.

The Ministry of New and Renewable Energy, quoting a report by the Asian Development Bank (ADB), said that during the period starting from 2010 onward, India undertook reforms of the fossil fuel subsidies following the approach to Remove, Target, and Replace. Tuning the retail prices, tax rates, and subsidies on selective petroleum products disincentivized the subsidies in the oil and gas sector.

The purpose was the gradual abolition of petrol and diesel subsidies, increasing the taxes. This freed fiscal space for more government support in renewable energy initiatives, e-vehicles, and power infrastructure.