Designing a Fair Subsidy Exit

Fuel and diesel subsidies often begin as crisis tools and become politically sticky. Analyze how a government can phase them out while protecting low-income households, preserving public trust, and avoiding inflation spikes. Compare policy tools such as targeted cash transfers, gradual price adjustments, automatic stabilization rules, and communication strategies. Then propose a step-by-step exit plan for a large commodity importer with strong inequality and fiscal pressure.