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India has recently made considerable progress in reforming energy prices. Gasoline prices were liberalized in 2010, and diesel and natural gas prices in 2014. Additionally, India has introduced an (quite novel from an international perspective) excise tax (the Clean Environment Cess) on coal production and imports, amounting to INR 400 ($6.00) per ton of coal in 2016. 1 Subsidies remain for liquefied petroleum gas (LPG), kerosene and electricity, given the first two fuels are consumed disproportionately by low-income households, while substantially higher electricity prices might run counter to the goal of displacing household biomass use with power grid access. There are nonetheless reasons why policymakers may wish to continue the direction of recent fuel price reforms, particularly by continued increases in the coal tax. One reason is that further reform can be in India’s own interest due to the environmental …