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Diesel Pricing in India: Entangled in Policy Maze

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  • Anand, Mukesh Kumar

    ()
    (National Institute of Public Finance and Policy)

Abstract

This paper identifies the important economic activities that use diesel and discusses the contribution of those sectors in GDP. Other important petroleum products and, their limited substitution possibility in the extant technological setting are highlighted. The modal-mix for transportation in India is also discussed. The relevant policy agenda for diesel in the vision statement for hydrocarbon sector is presented along with a summary on evolution of petroleum products pricing regimes. The importance of petroleum taxes for public finance at the federal and provincial levels is discussed in the context of wider reforms in administration of taxes. The impact of changes in diesel and / or petroleum prices, including taxes and subsidies, is explored along a few dimensions. Cost of diesel (and / or petroleum products) as a proportion of total cost of production is presented for certain users / sectors, and some suggestions on reform imperatives are offered.

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File URL: http://www.nipfp.org.in/newweb/sites/default/files/WP_2012_108.pdf
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Bibliographic Info

Paper provided by National Institute of Public Finance and Policy in its series Working Papers with number 12/108.

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Length: 41
Date of creation: Oct 2012
Date of revision:
Handle: RePEc:npf:wpaper:12/108

Note: Working Paper 108, 2012
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Web page: http://www.nipfp.org.in

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  1. Bhanumurthy, N. R. & Das, Surajit & Bose, Sukanya, 2012. "Oil Price Shock, Pass-through Policy and its Impact on India," Working Papers 12/99, National Institute of Public Finance and Policy.
  2. Surender Kumar, 2009. "The Macroeconomic Effects of Oil Price Shocks: Empirical Evidence for India," Economics Bulletin, AccessEcon, vol. 29(1), pages 15-37.
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Cited by:
  1. Anand, Mukesh, 2014. "Direct and Indirect Use of Fossil Fuels in Farming: Cost of Fuel-price Rise for Indian Agriculture," Working Papers 14/132, National Institute of Public Finance and Policy.
  2. Rahul Anand & David Coady & Adil Mohommad & Vimal V Thakoor & James P Walsh, 2013. "The Fiscal and Welfare Impacts of Reforming Fuel Subsidies in India," IMF Working Papers 13/128, International Monetary Fund.

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