Fuel Subsidy


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Fuel Subsidy

A program in which a government or other organization pays for a portion of gasoline, heating oil, or some other fuel. Fuel subsidies tend to be politically popular, especially when the market price of fuel climbs. However, they have caused unsustainable financial problems in some countries in which they have been implemented.
References in periodicals archive ?
For instance, they state that the accountant-general made 128 fuel subsidy payments each of N999m ($6.
USMAN AMEEN HR Manager The fuel subsidy removal is illtimed.
The Arab world has a high level of fuel subsidies, estimated at $250 billion a year, half the global fuel subsidy total.
THE government has exempted oil producers ONGC and Oil India Ltd from payment of fuel subsidy in the fourth quarter as the finance ministry has agreed to compensate the revenue loss on fuel sales.
During the meeting President Hadi promised the businessmen economic reforms which would accompany the fuel subsidy cuts, including the removal of "phantom jobs," the addition of new beneficiaries to the Social Welfare Fund's lists, and the fight against corruption.
But officials reassured that prices had not changed since the fuel subsidy was lifted, but pointed to a slump in the local market where, they say supply is higher than demand, and that "this is for the benefit of the citizen.
Some carried a mock coffin labelled "Badluck" - a play on the name of President Goodluck Jonathan, who has said the fuel subsidy was economically unsustainable.
The fuel subsidy is the only real claim to ownership or bona fide shared interest most people have on resources in their own country.
5 billion), spent on fuel subsidy, for some better purpose like training and employing young Omanis.
Kamal expects the government to put the second phase of the smart-card system into effect during the 2014/2015 fiscal year (FY) to trim the fuel subsidy bill and stop fuel profiteering.
The biggest subsidies are concentrated in the Middle East, North Africa, Asia and parts of Latin America, according to the IEA's Fossil Fuel Subsidy Database.