India imports about three fourths of its requirement of crude. In financial year 2012, this cost us Rs 726,386 crores[i]. After taking away the exported oil products, the net outflow India incurred was Rs. 441,743 crores. The subsidy provision for the year 2014 is budgeted at Rs. 80,000 crores, but experts estimate it at Rs. 1 lac crores, in best case scenario. This means the money central government gives to oil companies and others in the fuel chain, to compensate the loss