In my opinion,i do believe it is a laudable concept.
The Government due to the inadequate refining capacity,has to buy crude oil at the international price at which it is valued.
It then gives import(of refined products)permits to certain companies who then bring in refined products,due to the exchange parity and the cost at which it is sold at the pumps,the subsidy paid is the difference between the cost of import and the selling price at the pumps.
The real price should be the actual price it costs to land it at the point of sale bearing all logistics.
The goverment is removing it now due to inadequate management of the whole process