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
An excellent contribution by author giving a deep insight in to the Indian govt policies to safe guard public interests in the backdrop of high petroleum prices globally.
A strong legacy of knowledge in energy , maritime and blue economy and its linkage to economy. Such contributions may lead the govt to explore the potential of blue economy.