Fossil-fuel subsidy reform in India: cash transfers for PDS kerosene and domestic LPG

Fossil-fuel subsidy reform in India: cash transfers for PDS kerosene and domestic LPG

This new report by IISD reviews the existing mechanism of subsidy delivery through public distribution systems and examines the possibility of using cash transfers as an option for fossil-fuel subsidy reform. It focuses specifically on kerosene distributed through the PDS and domestic LPG.

This report revisits and reviews the existing mechanism of subsidy delivery through public distribution systems (PDSs) and examines the possibility of using cash transfers as an option for fossil-fuel subsidy reform. In an era of rapid technological change, it would be worthwhile to explore new technology-aided options not just to improve the mechanism of subsidy delivery, but, primarily, to ensure that the subsidies reach the intended beneficiaries. Such measures would also minimize inefficient and illegal usage of subsidized fuels. The report draws on relevant existing literature and insights from international experiences in implementation of cash transfers. The report focuses specifically on kerosene distributed through the PDS and LPG used by households (termed as “domestic LPG”) since these are the two fuels for which cash transfers are being considered most strongly as an option for subsidy delivery.

See Also

Report: Task force on direct transfer of subsidies on Kerosene, LPG & fertilizer.

Report: Task force on an IT strategy

Report: Expert group on a viable and sustainable system of pricing of petroleum products.

Report: Committee on pricing and taxation of petroleum products.

Report: Indian petroleum and natural gas statistics 2010-11.

Report: Level and pattern of consumer expenditure 2009-2010.

Report: Challenges of under-recoveries of petroleum products.

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