India counts as the third-largest economy in the world in terms of purchasing power and is expected to grow to 60 per cent of the size of the United States economy by 2034. This puts disquieting pressure not only on the economic infrastructure of the nation, but also raises the issue of environmental sustainability. The rapid economic progress witnessed that the total energy demand in India has increased substantially over the past decade. While this progress has contributed to economic development in the country on one hand and on the other hand a large segment of the population still lacks access to modern and clean sources of energy. Further, since almost 80 per cent of the crude oil consumed in India is imported, the domestic economy is susceptible to the vagaries of international prices. In an effort to improve energy access, shield domestic consumers from international price volatility and support energy-intensive industries (such as public transport and freight), the government has historically subsidized the four major petroleum products (petrol, diesel, kerosene and liquefied petroleum gas [LPG]).