India spends a mammoth amount on fuel subsidies every year. The central government's recent decision to hike the subsidised LPG cylinder quota alone will cost Rs 5,000 crore annually. But it is the subsidy on diesel that is the largest. Worse, the subsidy is increasingly diverted to unintended beneficiaries, reveals a study by Nielsen for the oil ministry.
Graphic by Anand Sinha
Text by Jyotindra Dubey
Source: Ministry of Petroleum and Natural Gas; ICRA