The government has budgeted for Rs 25,000 crore of
fuel subsidies in 2018-19, leaving a shortfall of Rs 9,000-28,000 crore, which could be met by ONGC and OIL entirely, or in part, if the government increases the budget allocation for these subsidies.
The government, she explained, has now resolved to cut spending on
fuel subsidies to allow the use of these funds to meet other obligations, including payment of civil servants' salaries on time.
Non-governmental groups are urging a "full and equitable phase-out by of all fossil
fuel subsidies by 2020, starting with the elimination of all subsidies for fossil fuel exploration and coal production."
Both countries are reportedly slashing
fuel subsidies in light of reduced government budgets due to global oil price devaluations.
Removing consumer
fuel subsidies amid collapsing oil prices could prove wrong-way bet for many nations
"Yemen spends on
fuel subsidies more than it spends on education and health care services together", said Wael Zakout, director of WB office in Yemen.
The decision by the Yemeni government to lift
fuel subsidies on July 30 granted the Houthis the populist mandate they needed to ride into town and seize power this summer.
When fiscal pressure forced the governments of Egypt and Yemen to end
fuel subsidies, inflation rates soared and riots broke out in the cities.
Much has been written about the political and economic repercussions of the recent lowering of
fuel subsidies in Egypt.
Summary: Tunisia's government cut
fuel subsidies on Tuesday, raising petrol prices by 6.3 percent in an effort to trim its budget deficit, using politically sensitive austerity measures.
Q "I'm really not clear on what fossil
fuel subsidies are.
Summary: Government will start cutting
fuel subsidies before it leaves office next year, but ambitious reform hinges on end to country's turmoil.
