Globally Governments Subsidise Diesel

Governments across the world incurred almost € 900 billion in fossil fuel subsidies last year which is almost twice the expenditure suffered in the year 2021

Subsidies on Gasoline for Indian Conglomerates

India’s Union Budget for the financial year 2023-24 will permit subsidies to  state owned Indian oil corporate retailers namely Indian Oil Corporation ,Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd to the tune of Rs 30,000 crore in order to compensate the companies for the huge losses they absorbed on account of  maintaining petrol and diesel prices despite an international surge in crude price .The Indian fiscal policy makers wanted to shield the consumers from inflationary pressures , keep Indian exports competitive and also to cross subsidise LPG known as “the poor man’s fuel” . The subsidy on fossil fuels is several times that for renewables which is deplored by climate change advocates.

Credit The Morung Express

These three Indian retail companies maintained  petrol and diesel prices since April  2022  till June 2022 in the face of an international sharp rise in crude oil prices  from USD 102.97 per barrel  to USD 116.01 per barrel.The Central Government in the month of May of 2022  slashed excise duties on gasoline and diesel by rupees 8/liter and rupees 6/liter respectively being the second duty cut in six months.Earlier a fuel price slash by the Central Government from the months of October 2018 to June 2019 were manifested in subsidies of Rs 26,957 crore (USD 3.9 billion) for gasoline and diesel.

Strategic Petroleum Reserves

On the pattern of the US Mines and Mineral Department which maintains the US strategic oil inventory at optimum levels the Central Government allocated  Rs 5,000 crore to the Indian Strategic Petroleum Reserves for buffering its crude oil reserves and to control price volatility .

 

Sources ; Euro News

ET Energyworld.com  Economic Times