India’s energy price challenge

The report of the expert group on pricing of petroleum products released a few days ago has made some extremely bold recommendations particularly in terms of increasing prices of LPG and kerosene and they need to be lauded for it. As pointed out by the committee, the benefits of subsidies on these petroleum products by and large do not reach the targeted populations at all. On the other hand, adulteration of diesel with kerosene has resulted in a significant worsening in urban air pollution apart from the huge financial losses on this kind of consumption.

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