Oil and gas subsidies have drastically decreased by 85% in just 10 years
Subsidy: A huge decline has been recorded in the subsidy in the oil and gas sector. Talking about the last 10 years, the subsidy in the oil and gas sector was $25 billion in 2013, which has come down to $3.5 billion by 2023.
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.
