India Slashes Petroleum Subsidy to 121 Billion Rupees in Budget 2025

In a significant move, the Indian government has reduced its petroleum subsidy allocation to 121 billion rupees (approximately $1.45 billion) in the Union Budget for fiscal year 2025-26. This decision reflects the government's efforts to streamline expenditure and promote fiscal consolidation. The cut in subsidy is expected to impact the pricing of cooking gas and other petroleum products, potentially affecting millions of households across the country. Industry experts suggest this move may lead to increased market-driven pricing in the petroleum sector, aligning with the government's broader economic reforms.

Source: Union Budget 2025-26 presented by Finance Minister Nirmala Sitharaman