In partnership with NITI Aayog, the International Energy Agency (IEA) released the first in-depth review of India’s energy policies.
- India spent $25 billion in 2018 on subsidies for the consumption of fossil fuels, mostly supporting oil consumption in the form of LPG ($17 billion) and gas ($4 illion).
- While the diesel subsidy ended in 2014-15, government is gradually increasing the prices of kerosene and cooking gas (LPG) to phase out the subsidies.
- India is the world’s third‑largest consumer of oil, the fourth‑largest oil refiner and a net exporter of refined products.
- The government aims to increase the share of natural gas in the country’s energy mix to 15% by 2030, from 6% today.
- Both the energy and emission intensities of India’s gross domestic product (GDP) have decreased by more than 20% over the past decade. This represents commendable progress even as total energy-related carbon dioxide (CO2) emissions continue to rise.
Important Info :
- Government should adopt a long-term energy plan for the country with focus on rationalising the energy prices, building energy infrastructure needs, energy security and access to affordable energy even as the government strives to open up the sector for private players and move towards cleaner fuels across sectors.
- The draft National Energy Policy by NITI Aayog, currently under consultation, should be adopted swiftly to guide policy making, implementation and enforcement across central and state governments.
- Government should continue reducing and consider phasing out fossil fuel subsidies through the reform of the LPG scheme in favour of cleaner fuels.