{"id":965,"date":"2010-06-08T17:14:12","date_gmt":"2010-06-08T11:44:12","guid":{"rendered":"http:\/\/greenworldinvestor.com\/?p=965"},"modified":"2010-06-08T17:14:12","modified_gmt":"2010-06-08T11:44:12","slug":"indian-government-fails-to-rein-in-fossil-fuel-subsidies-despite-favorable-political-position","status":"publish","type":"post","link":"https:\/\/iiec-india.org\/greenworld\/2010\/06\/08\/indian-government-fails-to-rein-in-fossil-fuel-subsidies-despite-favorable-political-position\/","title":{"rendered":"Indian Government fails to Rein in Fossil Fuel Subsidies despite Favorable Political Position"},"content":{"rendered":"<p>The Indian Government failed to pass a law reforming the structure of state subsidies to the Oil sector .The Meeting between a empowered committee of Indian ministers was expected to loosen the control over prices of petrol,diesel and cooking gas.However the Government failed to make any headway citing high inflation as a reason to delay critical reforms in this sector.I<a href=\"http:\/\/greenworldinvestor.com\/2010\/05\/20\/indian-state-owned-oil-companies-remain-captive-to-the-whims-of-the-government\/\">ndia&#8217;s State Oil Companies<\/a> face the brunt of these price controls facing huge losses by subsidizing the cost of petroleum products.The Indian government\u00a0 periodically issues Oil Bonds when the Losses by the Oil PSU&#8217;s becomes too great for the companies to bear.Note the subsidies are mostly a complete waste not reaching their target segment as most of these products are consumed by India&#8217;s well off classes.The Cooking Gas subsidy is the most obvious example of this waste.No one amongst India&#8217;s poor can afford Cooking Gas using mostly Kerosene or Wood .<\/p>\n<p>India which has been mostly ruled by Coalition governments in the last 20 years has never possesed the political will to implement\u00a0 unpopular reforms in the Energy sector.But the UPA coalition this time which has the Congress Party as a Dominating Member had raised hopes that they could\u00a0 pass some unpopular reforms.The government has managed to pass some Reforms in the Social Sector like Education and Female Empowerment,however the Government has failed to muster the Political Will in the case of Oil Subsidies.India&#8217;s State owned Oil PSU&#8217;s whose stocks had risen with the expectations of Oil Reforms have fallen back once again.<\/p>\n<h3><a href=\"http:\/\/www.businessweek.com\/news\/2010-06-08\/india-delays-fuel-price-decision-amid-high-inflation-update2-.html\">India Delays Fuel Price Decision Amid High Inflation &#8211; Bloomberg<\/a><\/h3>\n<blockquote><p>India delayed a decision to raise prices of fuels  including gasoline and diesel on concern higher costs will stoke  inflation, already running at the fastest clip among the Group of 20  nations. Shares of state refiners fell.<\/p>\n<p>Ministers led by Finance Minister Pranab  Mukherjee met yesterday to discuss a recommendation made by a panel in  February that India free gasoline and diesel prices from state control  and increase kerosene and cooking gas rates. The group is likely to  reconvene in 10 days and a decision may be reached then, Oil Secretary  Sthanunathan Sundareshan said in New Delhi.<\/p>\n<p>Raising prices will help the government cut  expenditure on fuel subsidies, which were 260 billion rupees ($5.5  billion) last year. India, which more than doubled prices of natural gas  sold by state-run Oil &amp; Natural Gas Corp. and Oil India Ltd. last  month, is seeking to limit losses of state refiners that help cap  inflation by selling fuels below cost.<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>The Indian Government failed to pass a law reforming the structure of state subsidies to the Oil sector .The Meeting between a empowered committee of Indian<span class=\"excerpt-hellip\"> [\u2026]<\/span><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","content-type":"","footnotes":""},"categories":[86,27,37,38],"tags":[2243,3392,4307,5291],"class_list":["post-965","post","type-post","status-publish","format-standard","hentry","category-energy-indian-capital-markets","category-gas","category-oil-fossil-fuels-climate-change","category-psu","tag-government","tag-legislation","tag-reforms","tag-subsidy"],"_links":{"self":[{"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/posts\/965","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/comments?post=965"}],"version-history":[{"count":0,"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/posts\/965\/revisions"}],"wp:attachment":[{"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/media?parent=965"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/categories?post=965"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/tags?post=965"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}