Unwinding Subsidies

Alongside China, India has emerged as an important driver of many of the trends expected to determine the direction of future oil and tanker markets. Its rapidly-growing economy has been important in shifting the center the oil demand growth eastward. Additionally, its export refineries have impacted both regional and international refined product trade flows. In a development likely to churn future oil and tanker markets, in late June, India moved to begin phasing out its subsidies for transportation fuels. The decision is an important step for balancing the Indian economy and may eventually provide an example for other countries looking to make similar changes in the years to come. Download here