Meaning
Definition
A Fuel Subsidy involves a government paying a portion of the fuel price, reducing the cost for consumers and businesses. This policy aims to make essential fuels like petrol or diesel more affordable.How It Works
The government covers the difference between the market price and the lower price consumers pay at the pump. This support can be direct or indirect, impacting retail fuel prices.Objectives and Impacts
Objectives include easing financial burdens on citizens and supporting economic activity. However, it can lead to significant government expenditure. For efficient daily financial management, understanding digital payment options like UPI can be beneficial.Author
