1. FOSSIL FUEL AND RENEWABLE ENERGY WOKSHOP May 2014

2. Taxes on fossil fuel Excise duty: revenue raising MID Levy: to finance environmental programmes, especially MID

3. Evolution of rates Excise duty Rs 2 bn ( around US $ 66 m) PeriodMogas (gasoline) Diesel Before Sept 2000220%75% Sept 2000 to June2002150%25% Jul 2002 to Oct 2010Rs 9.80 per litre Rs 3 per litre Nov 2010 to dateRs 10.80 per litre Rs 3.30 per litre Consumption local 2013 130 million litre 250 million litres

4. Evolution of rates MID levy introduced in June 2008 June 2008 – Oct 2010 Nov 2010 to now Mogas/diesel /fuel oil /aviation spirit (per litre) 15 cts30 cts Coal kg15 cts30 cts LPG kg15 cts30 cts

5. MID LEVY MID levy is imposed on domestic consumption as well as re-export (bunkering) Issue: Aviation spirit: MID levy is in contraction of the International Civil Aviation Organisation Principle of Taxation: Commitment to remove it next year Bunkering : making our project less competitive.

6. IS MID LEVY A CARBON TAX? Source PARRY, IMF 2011

8. LPG Mainly used by household for cooking – 12 kg cylinder subsidised price Rs 330 – subsidy around Rs 300 (i.e around $ 10, 50% of the price – Gas used for industrial use – not subsidised-

9. Ethanol Govt planning to mix ethanol with petrol E5